BLOOMFIELD HILLS, Mich.,
Nov. 10, 2016 /PRNewswire/
-- Agree Realty Corporation (NYSE: ADC) (the "Company")
today announced it has entered an agreement to amend and restate
its senior unsecured credit facility. The amended and
restated credit facility (the "Credit Facility") will be increased
to $350 million and is comprised of a
$250 million unsecured revolving
credit facility (the "Revolving Facility") and extensions of the
Company's existing $65 million and
$35 million unsecured term loans
(together, the "Unsecured Term Loans"). The Revolving
Facility will mature in January 2021
with options to extend the maturity date to January 2022, and the Unsecured Term Loans will
mature in January 2024.
"We are very pleased with the improved terms of our credit
facility and the strong support of our expanded bank group," said
Matt Partridge, Chief Financial
Officer of Agree Realty Corporation. "This financing further
solidifies our industry-leading balance sheet by extending the
maturities of our unsecured revolver and term loans, while also
providing us with increased capacity to execute on our operating
strategy."
The Revolving Facility's interest rate is based on a pricing
grid with a range of 130 to 195 basis points over LIBOR, determined
by the Company's leverage ratio. At the Company's current leverage
ratio, the interest rate on the Revolving Facility would be
approximately 1.83%. The Company currently has no outstanding
balance on the Revolving Facility.
The interest rate on the Unsecured Term Loans is based on a
pricing grid with a range of 165 to 235 basis points over LIBOR,
determined by the Company's leverage ratio. The Company will
utilize existing interest rate swaps to fix LIBOR on the Unsecured
Term Loans at approximately 2.13%. At the Company's current
leverage ratio, the interest rate on the Unsecured Term Loans would
be approximately 3.78%.
The Credit Facility includes an accordion option that allows the
Company to request additional lender commitments up to a total of
$500 million. Closing and funding of
the Credit Facility is expected to occur December 15, 2016, subject to the satisfaction of
standard closing conditions.
PNC Capital Markets LLC, Citigroup Global Markets Inc. and Wells
Fargo Securities, LLC will serve as Joint Lead Arrangers and Joint
Lead Book Runners for the Revolving Facility. PNC Bank
National Association will serve as the Administrative Agent and
Citigroup Global Markets Inc. and Wells Fargo Securities, LLC will
serve as Co-Syndication Agents. Capital One, National
Association, Citizens Bank, N.A., Regions Bank, SunTrust Bank, U.S.
Bank National Association and Raymond
James, N.A. will serve as participating lenders in the
Revolving Facility.
PNC Capital Markets LLC, Capital One, National Association,
Regions Capital Markets, SunTrust Robinson Humphrey, Inc. and U.S.
Bank National Association will serve as Joint Lead Arrangers
and Joint Lead Book Runners for the Unsecured Term Loans. PNC
Bank National Association will serve as the Administrative Agent
and Capital One, National Association, Regions Bank, SunTrust Bank
and U.S. Bank National Association will serve as Co-Syndication
Agents. Raymond James, N.A. and Stifel Bank & Trust will
serve as participating lenders in the Unsecured Term Loans.
About Agree Realty Corporation
Agree Realty Corporation is a publicly traded real estate
investment trust primarily engaged in the acquisition and
development of properties net leased to industry-leading retail
tenants. The Company currently owns and operates a portfolio
of 347 properties, located in 43 states and containing
approximately 6.8 million square feet of gross leasable
space. The common stock of Agree Realty Corporation is listed
on the New York Stock Exchange under the symbol "ADC". For
additional information, please visit www.agreerealty.com.
This press release contains certain "forward-looking"
statements relating to, among other things, potential incurrence of
indebtedness. Forward-looking statements are generally identifiable
by use of forward-looking terminology such as "may," "will,"
"should," "potential," "intend," "expect," "seek," "anticipate,"
"estimate," "approximately," "believe," "could," "project,"
"predict," "forecast," "continue," "plan" or other similar words or
expressions. Forward-looking statements are based on certain
assumptions and can include future expectations, future plans and
strategies, financial and operating projections or other
forward-looking information. These forward-looking statements are
subject to various risks and uncertainties, many of which are
beyond the Company's control, which could cause actual results to
differ materially from such statements. These risks and
uncertainties include, but are not limited to factors described in
greater detail in the Company's filings with the Securities and
Exchange Commission ("SEC"), including, without limitation, the
Company's Annual Report on Form 10-K for the year ended
December 31, 2015. Unless
legally required, the Company disclaims any obligation to update
any forward-looking statements, whether because of new information,
future events or otherwise.
For further information about the Company's business and
financial results, please refer to the "Management's Discussion and
Analysis of Financial Condition and Results of Operations" and
"Risk Factors" sections of the Company's SEC filings, including,
but not limited to, its Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q, copies of which may be obtained at the
Investor Relations section of the Company's website at
www.agreerealty.com.
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SOURCE Agree Realty Corporation