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Agree Realty Corp.

Agree Realty Corporation Expands Credit Facility to $1.25 Billion, Reduces Borrowing Cost

Strategic Insights

— 1 min read

Agree Realty Corporation, a publicly traded real estate investment trust, has announced the expansion of its senior unsecured revolving credit facility to $1.25 billion, with an accordion option to raise the total to $2.0 billion. This move is part of the company's efforts to bolster its balance sheet and increase its liquidity, which now stands at approximately $1.7 billion excluding the $750 million accordion option.

The Credit Facility matures in August 2028, but the company has options to extend the maturity date to August 2029. The interest rate on the Credit Facility has been reduced by five basis points to SOFR plus 82.5 basis points, including a credit spread adjustment.

"This expanded Credit Facility bolsters our fortress balance sheet and provides us with significant capacity as we continue to expand our pipeline," said Peter Coughenour, Chief Financial Officer. "We greatly appreciate the strong support of our bank group."

Key Takeaways:

  • Agree Realty Corporation has expanded its senior unsecured revolving credit facility to $1.25 billion, with an accordion option to increase the total to $2.0 billion.
  • The Credit Facility will mature in August 2028, but the company has options to extend the maturity date to August 2029.
  • The interest rate on the Credit Facility has been reduced by five basis points to SOFR plus 82.5 basis points, including a credit spread adjustment.
  • The company's total liquidity now stands at approximately $1.7 billion excluding the $750 million accordion option.
  • The company has options to extend the maturity date of the Credit Facility to August 2029.
  • Agree Realty Corporation is a publicly traded real estate investment trust that is RETHINKING RETAIL through the acquisition and development of properties net leased to industry-leading, omni-channel retail tenants.

Statistics:

  • The Credit Facility includes an accordion option that allows the company to request additional lender commitments up to a total of $2.0 billion.
  • The company's total liquidity now stands at approximately $1.7 billion excluding the $750 million accordion option.
  • The Credit Facility will mature in August 2028, but the company has options to extend the maturity date to August 2029.
  • The interest rate on the Credit Facility has been reduced by five basis points to SOFR plus 82.5 basis points, including a credit spread adjustment.

Sources:

  • "Agree Realty Corporation." Press Release, 8 Aug. 2024, agree-realty.com.

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