Phillips Edison & Company closes $ 980 million unsecured credit facility
CINCINNATI – (BUSINESS WIRE) – Phillips Edison & Company, Inc. (“PECO”), an internally managed real estate investment trust (“REIT”) and one of the largest owners and operators of omni-channel grocery-based shopping centers in the neighborhood, announced she refinanced one of her term loans and secured a new revolving credit facility.
On July 2, 2021, PECO entered into a new $ 980 million senior unsecured credit facility (the “Facility”) operated by PNC Bank, National Association, as its administrator. The Facility consists of a $ 500 million revolving credit facility (the “Revolver”) and two separate unsecured unsecured term loans of $ 240 million.
The proceeds from the term loan are used to repay an existing term loan at a reduced interest rate. The first $ 240 million term loan is due in November 2025 and the second $ 240 million term loan is due in July 2026. Loans carry an annual interest rate of LIBOR plus 125 basis points, subject the continuation of PECOECO’s covenant leverage, which is 40 basis points lower than the refinanced term loan with a term until November 2025.
The revolver matures in January 2026, with options for PECO to extend the term for an additional two six-month periods, replacing the previous revolving credit facility with a term of October 2021. Revolver loans bear an annual interest rate of LIBOR plus 135 basis points, subject to the continuation of PECO’s covenant leverage, which is five basis points lower than the previous revolving credit facility.
To promote PECO’s environmental, social and governance (ESG) initiatives, the turret allows an additional margin reduction of one basis point when certain ESG goals are met.
The Revolver syndication was led by PNC Capital Markets LLC and KeyBanc Capital Markets as joint bookrunners. PNC Capital Markets LLC; KeyBank Capital Markets; BOFA Securities, Inc .; JPMorgan Chase Bank, NA; and Wells Fargo Securities, LLC are serving as joint lead arrangers for the Revolver. PNC Bank, National Association acts as the administrative agent. National KeyBank Association; BOFA Securities, Inc .; JPMorgan Chase Bank, NA; and Wells Fargo Bank, National Association, are co-syndication agents for the Revolver. BMO Harris Bank, NA; Capital One, National Association; Fifth Third Bank, National Association; Morgan Stanley Senior Funding, Inc .; and Regions Bank act as co-documentation agents for the Revolver. Mizuho Bank, Ltd and the US Bank National Association also participate in the revolver. PNC Capital Markets LLC is acting as the sustainability agent for the Revolver.
Term loan syndication was managed 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 acts as the administrative agent. BMO Harris Bank, NA; Capital One, National Association; Fifth Third Bank, National Association; and Regions Bank are acting as co-syndication agents for the term loans. Bank of America, NA; JPMorgan Chase Bank, NA; Morgan Stanley Senior Funding, Inc .; Wells Fargo Bank, National Association; National KeyBank Association; Mizuho Bank, Ltd .; First horizon bench; United Bank; TriState Capital Bank; The associated banks also take part in the term loans.
About Phillips Edison & Company
Phillips Edison & Company, Inc. (“PECO”), an internally managed REIT, is one of the largest owners and operators of grocery-based shopping centers in the United States. PECO’s diversified portfolio of busy neighborhood malls includes a mix of national and regional retailers selling on-demand goods and services in fundamentally strong markets in the United States. Through its vertically integrated operating platform, PECO manages a portfolio of 300 shopping centers, including 278 wholly owned centers with a total of approximately 31.3 million square feet in 31 states as of March 31, 2021. The company continues to focus solely on creating great grocery shopping experiences and improving the communities it serves from one center to another. More information is available at www.phillipsedison.com.
PECO uses and intends to continue to use the Investors website, which can be found at www.phillipsedison.com/investors, to disclose material non-public information and to comply with its disclosure obligations under Regulation FD.
Certain statements in this Phillips Edison & Company, Inc. (the “Company”) press release, including statements regarding the Company’s expectations with respect to its term loans and the revolving credit facility, may be considered 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 applicable safe harbor provisions for forward-looking statements contained in these laws. Such forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “anticipate”, “estimate”, “believe”, “continue”, “search” “,” Goal “,” Goal “,” Strategy “,” Plan “,” Focus “,” Priority “,” Should “,” Could “,” Potential “,” Possible “,” Looking ahead “,” “Optimistic” or 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, that could cause actual results to differ materially from projected or expected results. These risks include, without limitation: (i) changes in the national, regional or local business climate; (ii) local market conditions, including oversupply of space or reduced demand for properties similar to those in the Company’s portfolio; (iii) vacancy, changes in market rental rates, and the need to regularly repair, renovate, and re-let space; (iv) changes in interest rates and the availability of permanent mortgage financing; (v) competition from other available properties and the attractiveness of properties in the Company’s portfolio to its tenants; (vi) tenants ‘financial stability, including tenants’ ability to pay rent; (vii) changes in tax, real estate, environmental and spatial laws; (viii) the concentration of the Company’s portfolio in a limited number of industries, regions or investments; (ix) the economic, political and social implications and uncertainties relating to the COVID-19 pandemic, including its potential or expected impact on the Company’s tenants, the Company’s business and the Company’s view of future trends; and (x) all other risks contained in the company’s SEC filings. Therefore, such statements are not guarantees of the Company’s performance in future periods. Except as required by law, the company assumes no obligation to update or revise any forward-looking statements contained in this press release.
See Part I, Point 1A. Risk Factors in the Company’s 2020 Annual Report on Form 10-K, filed with the SEC on March 12, 2021, and any subsequent filings to discuss some of the risks and uncertainties, although not all of the risks and uncertainties that may lead to it that actual results may differ materially from those presented in the company’s forward-looking statements. Except as required by law, the company assumes no obligation to update or revise any forward-looking statements in this press release.