Agree Realty Extends And Reprices Its $85 Million Unsecured Credit
Facility And Obtains $23.6 Million Secured Financing
FARMINGTON HILLS, Mich.,
Dec. 17, 2012 /PRNewswire/ -- Agree Realty Corporation
(NYSE: ADC) today announced the amendment of its $85 million unsecured revolving credit facility.
The amendment extends the facility's maturity to October 2015 and provides for two one-year
options to extend the maturity, at the Company's discretion, to
October 2017, subject to customary
conditions. Annual interest rates on borrowings under the
amended facility have been reduced to LIBOR plus 150 to 215 basis
points, depending on the Company's leverage ratio. Based on
its current leverage ratio, the Company anticipates the margin
initially will be 150 basis points over LIBOR. The facility
includes a $50 million accordion
feature to increase capacity to $135
million, subject to certain conditions, to accommodate the
Company's business plans. Bank of America, N.A. will act as
administrative agent. Participating banks include PNC Bank,
Bank of Montreal and U.S.
Bank.
Additionally, the Company closed on a $23.6 million secured CMBS financing with Morgan
Stanley Mortgage Capital Holdings LLC. The 10-year,
non-recourse loan is secured by 12 single tenant properties, bears
interest at a fixed rate of 3.60% per year and matures in January
2023. The proceeds from this financing will be used to pay
down amounts outstanding under the Company's unsecured credit
facility.
"These transactions, in conjunction with a recently closed
$25 million term loan, provide the
Company with increased capacity to fund its growing acquisition and
development platforms while taking advantage of today's low
interest rate environment," said Joey Agree, President and Chief
Operating Officer. "We appreciate the strong support we
received from our bank group and lenders, which speaks to the
quality and strength of our portfolio."
During 2012, the Company raised or refinanced $156.5 million of total debt, including
$71.5 million of long-term mortgage
debt in 2012 at a weighted-average fixed annual rate of 3.22%,
including the effect of interest swap agreements. The Company
currently has a weighted-average debt maturity of 5.8 years and no
aggregate annual maturities exceeding $10
million until 2017.
Agree Realty is primarily engaged in the acquisition and
development of single tenant properties net leased to industry
leading retail tenants. The Company currently owns and operates a
portfolio of 102 properties, located in 26 states and containing
approximately 3.2 million square feet of gross leasable
space. The Company's common stock is listed on the New York
Stock Exchange under the symbol "ADC".
For additional information, visit the Company's home page at
www.agreerealty.com.
The Company considers portions of the information contained
in this release to be forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, each as amended. These
forward-looking statements represent the Company's expectations,
plans and beliefs concerning future events. Although these
forward-looking statements are based on good faith beliefs,
reasonable assumptions and the Company's best judgment reflecting
current information, certain factors could cause actual results to
differ materially from such forward–looking statements. Such
factors are detailed from time to time in reports filed or
furnished by the Company with the Securities and Exchange
Commission, including the Company's Form 10-K for the year ended
December 31, 2011. Except as required
by law, the Company assumes no obligation to update these
forward–looking statements, even if new information becomes
available in the future.
SOURCE Agree Realty Corporation