Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Agree Realty Expands Credit Facility, Fortifies Balance Sheet

Published 12/10/2019, 08:46 PM
Updated 07/09/2023, 06:31 AM

Agree Realty Corporation (NYSE:ADC) recently fortified its balance sheet by amending and restating the company’s revolving credit and term loan agreement to increase the senior unsecured credit facility to $600 million. The move will also enable the company to extend the maturity of the revolving facility.

The credit facility comprises a $500-million unsecured revolving line of credit due in January 2024 that can be extended by a year by exercising an option. The credit facility also consists of two unsecured term loans worth $65 million and $35 million, respectively. It will mature in January 2024. There is also an accordion option in the credit agreement for increasing the credit facility capacity by up to a total of $1.1 billion.

For the revolving line of credit, pricing will range from an interest rate of LIBOR + 77.5 to 145 basis points (bps). For the term loan, pricing will range from an interest rate of LIBOR + 85 to 165 bps. Both ranges will depend on the company's credit rating.

Based on the company's leverage ratio and credit rating at the time of closing, the revolving facility was priced at LIBOR+ 82.5 bps, while interest rate on unsecured term loans was 3.13%. Agree Realty intends to utilize existing interest rate swaps to fix LIBOR on the term loans at around 2.13%.

The credit facility expansion is a strategic fit as it provides ample growth opportunities. Moreover, extended maturities of the assumed debt will help improve its maturity profile and enjoy greater liquidity for day-to-day operations. The recast will also enable the company to make accretive investments in high-quality retail net lease properties.

Recently, the company also announced a 2.6% sequential hike in quarterly cash dividend. It will now pay a dividend of 58.50 cents per share, up from the 57 cents paid in the prior quarter. The increased dividend will be paid on Jan 3, 2020, to shareholders of record as on Dec 20, 2019.

In the past six months, shares of this Zacks Rank #2 (Buy) company have gained 7.8% compared with the industry’s rally of 3.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.


Other Stocks to Consider

Brixmor Property Group Inc. (NYSE:BRX) currently carries a Zacks Rank of 2. Its shares have rallied 22.5% over the past six months. The company’s funds from operations (FFO) per share estimate for 2019 remained unchanged at $1.92 in a month’s time.

Retail Properties of America, Inc. (NYSE:RPAI) holds a Zacks Rank of 2, presently. Its shares have appreciated 14.1% over the past six months. The company’s FFO per share estimate for 2019 has remained unrevised at $1.06 over the past 30 days.

Currently, Cousins Properties Incorporated (NYSE:CUZ) carries a Zacks Rank of 2. The Zacks Consensus Estimate for the company’s 2019 FFO per share moved up 2.1% to $2.96 over the past two months. Its shares have gained 5.8% over the past six months.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>



Agree Realty Corporation (ADC): Free Stock Analysis Report

Retail Properties of America, Inc. (RPAI): Free Stock Analysis Report

Brixmor Property Group Inc. (BRX): Free Stock Analysis Report

Cousins Properties Incorporated (CUZ): Free Stock Analysis Report

Original post

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.