ADC - Agree Realty gets commitments for $350M term loan

2023-06-28 16:21:29 ET

Agree Realty ( NYSE: ADC ) has received commitments for an unsecured $350M 5.5-year term loan, in a move that will position the retail REIT for growth and strengthen its balance sheet, the company said Wednesday.

"The term loan fits well into our debt maturity schedule, and, upon closing, we will have no material debt maturities until 2028," said Chief Financial Officer Peter Coughenour.

The term loan is expected to close in July 2023, with a 12-month delayed draw feature, and is expected to mature in January 2029.

In addition, the loan has an accordion feature that allows Agree ( ADC ) to request additional lender commitments up to a total of $500M.

In anticipation of the new term loan, the company entered into $350M of forward starting swaps to fix SOFR over the 5.5-year period. Including the effect of the forward starting swaps, ADC anticipates the interest rate of the term loan will be fixed at 4.52% based on its current credit rating.

Last week, Mizuho turned bullish on Agree Realty ( ADC ) for its strong balance sheet, defensive tenant base .

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