Phillips Edison & Company raises unsecured revolver to $800 million
Phillips Edison & Company, Inc. (Nasdaq: CEE) (“PECO” or the “Company”), one of the largest owners and operators of grocery-anchored omnichannel neighborhood shopping centers, today announced that it has amended its credit facility agreement (the “Amendment”) to, among other things, increase revolving credit commitments by $300 million under its revolving credit facility, bringing the total revolving credit commitment to $800 million. The revolving credit facility is expected to mature in January 2026, with options available to extend the maturity to January 2027. The Company may increase the capacity of the revolving credit facility to $1.0 billion with a feature accordion, subject to further syndication.
In addition to increasing borrowing capacity, the Amendment replaces LIBOR with SOFR as the benchmark interest rate for the revolving credit facility. The amendment also replaces LIBOR with SOFR on the two $240 million senior unsecured term loan tranches maturing in 2025 and 2026, respectively. The pricing grid, which sets the spread based on CEE’s investment grade debt rating, remains unchanged.
PNC Capital Markets LLC and KeyBank Capital Markets acted as joint bookrunners and co-lead arrangers for the revolving credit facility along with other co-lead arrangers, including BOFA Securities, Inc.; JPMorgan Chase Bank, North America; and Wells Fargo Securities, LLC. PNC Bank, National Association serves as administrative agent and KeyBank National Association; Bank of America, North America; JPMorgan Chase Bank, North America; and Wells Fargo Bank, National Association are acting as co-syndication agents. Morgan Stanley Senior Funding, Inc.; Capital One, National Association; Fifth Third Bank, National Association; Bank of Regions; and BMO Harris Bank, NA are acting as joint documentation agents. US Bank National Association and Mizuho Bank, Ltd. also participate in the transaction. PNC Capital Markets LLC serves as sustainability agent.
“The increased capacity of our revolver enhances our ability to fund our growth initiatives while giving us additional flexibility regarding when we access capital markets,” said John Caulfield, Chief Financial Officer and Treasurer. “We appreciate the continued and expanded support of our lending partners as we continue to successfully grow our grocery-anchored shopping center portfolio.”
About Phillips Edison & Company
Phillips Edison & Company, Inc. (“PECO”), an internally managed REIT, is one of the largest owners and operators of grocery-anchored shopping centers in the United States. Founded in 1991, PECO has generated strong results through its vertically integrated operating platform and nationwide footprint of busy shopping centers. PECO Centers feature a mix of national and regional retailers providing essential goods and services to fundamentally strong markets across the United States. Major CEE grocery stalwarts include Kroger, Publix, Ahold Delhaize and Albertsons. As of March 31, 2022, PECO operates 290 shopping centers, including 269 wholly owned centers comprising 30.8 million square feet in 31 states, and 21 shopping centers owned in two institutional joint ventures. PECO is exclusively focused on creating omnichannel shopping experiences rooted in grocery and improving communities, one mall at a time.
PECO uses, and intends to continue to use, its website for investors, which can be accessed at https://investors.phillipsedison.comas a means of disclosing material nonpublic information and complying with its disclosure obligations under Regulation FD.