Phillips Edison & Company closes $ 980 million unsecured credit facility
CINCINNATI – (COMMERCIAL THREADannounced it has refinanced one of its term loans and secured a new revolving line of credit.
On July 2, 2021, PECO entered into a new $ 980 million senior unsecured credit facility (the âFacilityâ) led by PNC Bank, National Association as administrative agent. The Facility consists of a $ 500 million revolving credit facility (the âRevolverâ) and two separate $ 240 million unsecured variable rate term loans (the âTerm Loansâ).
The proceeds of term loans are used to repay an existing term loan at a reduced interest rate. The first term loan of $ 240 million matures in November 2025 and the second term loan of $ 240 million matures in July 2026. The loans will bear interest at the annual rate of LIBOR plus 125 basis points, under reserve for maintaining the leverage effect of PECO. , the rate of which is 40 basis points lower than that of the refinanced term loan with a maturity of November 2025.
The Revolver matures in January 2026, with options for PECO to extend the term for two additional six-month periods, replacing the previous revolving credit facility which matured in October 2021. Borrowings under the Revolver will bear interest at an annual LIBOR rate plus 135 basis points, subject to the maintenance of the covenant leverage of PECO, the rate of which is five basis points lower than that of the previous revolving credit facility.
To advance PECO’s environmental, social and governance (âESGâ) initiatives, the Revolver allows for an additional margin reduction of one basis point if certain ESG objectives are met.
The Revolver syndication was led by PNC Capital Markets LLC and KeyBanc Capital Markets as associate bookkeepers. PNC Capital Markets LLC; KeyBanc Capital Markets; BOFA Securities, Inc .; JPMorgan Chase Bank, NA; and Wells Fargo Securities, LLC serve as joint lead arrangers for the Revolver. PNC Bank, National Association serves as administrative agent. National KeyBank Association; BOFA Securities, Inc .; JPMorgan Chase Bank, NA; and Wells Fargo Bank, National Association are acting as co-syndication agents for The Revolver. BMO Harris Bank, NA; Capital One, National Association; Fifth Third Bank, National Association; Senior Financing from Morgan Stanley, Inc .; and the Banque des RÃ©gions act as Co-Documentation Agents for the Revolver. Mizuho Bank, Ltd and US Bank National Association also participate in Revolver. PNC Capital Markets LLC serves as the sustainability agent for the revolver.
Syndication of term loans was carried out by PNC Capital Markets LLC; BMO Capital Markets Corp .; Capital One, National Association; Fifth Third Securities, Inc .; and Regions Capital Markets as Joint Bookrunners and Joint Lead Arrangers. PNC Bank, National Association serves as administrative agent. BMO Harris Bank, NA; Capital One, National Association; Fifth Third Bank, National Association; and Regions Bank act as co-syndication agents for term loans. Bank of America, NA; JPMorgan Chase Bank, NA; Senior Financing from Morgan Stanley, Inc .; Wells Fargo Bank, National Association; National KeyBank Association; Mizuho Bank, Ltd. ; First Horizon Bank; United Bank; TriState Capital Bank; Associated Bank also participates in term loans.
About Phillips Edison & Company
Phillips Edison & Company, Inc. (âPECOâ), an internally managed REIT, is one of the largest owners and operators of grocery store anchored malls in the country. CEEC’s diverse portfolio of busy neighborhood shopping centers includes a mix of national and regional retailers selling essential goods and services in fundamentally strong markets across the United States. Through its vertically integrated operating platform, PECO manages a portfolio of 300 shopping centers, including 278 wholly-owned centers representing approximately 31.3 million square feet in 31 states (as of March 31, 2021). The company remains exclusively focused on creating shopping experiences that are rooted in the grocery store and improving the communities it serves, one hub at a time. For more information, please visit www.phillipsedison.com.
PECO uses and intends to continue to use its investor website, which can be accessed at www.phillipsedison.com/investors, as a means of disclosing material non-public information and of complying with its obligations. of disclosure under the FD regulation.
Certain statements contained in this press release from Phillips Edison & Company, Inc. (the âCompanyâ), including statements relating to the Company’s expectations regarding its term loans and its revolving credit facility, may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends that all such forward-looking statements be covered by the safe harbor provisions applicable to forward-looking statements contained in such laws. Such forward-looking statements can generally be identified by the use by the Company of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “anticipate”, ” estimate “,” believe “,” continue to “,” seek “,” objective “,” objective “,” strategy “,” plan “,” focus “,” priority “,” should “,” could “,” ” “Optimistic” or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Such statements are subject to certain risks and uncertainties, including known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. These risks include, but are not limited to: (i) changes in national, regional or local economic climates; (ii) local market conditions, including an oversupply of space or reduced demand for properties similar to those in the Company’s portfolio; (iii) vacant housing, changes in market rental rates and the need to periodically repair, renovate and re-let premises; (iv) changes in interest rates and the availability of permanent mortgage financing; (v) competition from other available properties and the attractiveness of the properties in the Company’s portfolio for its tenants; (vi) the financial stability of tenants, including the ability of tenants to pay rent; (vii) changes in tax, real estate, environmental and zoning laws; (viii) the concentration of the Company’s portfolio in a limited number of industries, geographic areas or investments; (ix) the economic, political and social impact and uncertainty associated with the COVID-19 pandemic, including its potential or expected impact on the tenants of the Company, the operations of the Company and the perspective of the Company on future trends; and (x) any other risk included in documents filed by the Company with the SEC. Therefore, these statements are not intended to be a guarantee of the performance of the Company in future periods. Except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements contained in this press release.
See Part I, Point 1A. Risk Factors from the Company’s 2020 Annual Report on Form 10-K, filed with the SEC on March 12, 2021, and any subsequent filing, for a discussion of some of the risks and uncertainties, but not all of the risks and uncertainties , which could cause actual results to differ materially from those presented in the Company’s forward-looking statements. Except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements contained in this press release.