Phillips Edison-ARC Shopping Center REIT Inc. Enters into an Unsecured Revolving Credit Facility for up to $600 Million of Availability; Market Leading Terms and Structure
CINCINNATI, Jan. 6, 2014 /PRNewswire/ -- Phillips Edison–ARC Shopping Center REIT Inc. (the "Company") on December 18, 2013, through Phillips Edison-ARC Shopping Center Operating Partnership, L.P. entered into an unsecured credit facility that provides aggregate revolving loan borrowings of up to $350 million (the "Credit Facility"), initially priced at 130 basis points over LIBOR based on the Company's current leverage ratio. Through an accordion feature and subject to certain conditions, the Company may increase availability under the Credit Facility to up to $600 million. At closing, the Credit Facility had no outstanding balance.
The Credit Facility has a four year term, maturing in December 2017 with two 6-month extension options at the Company's option, which if exercised by the Company, would extend the maturity date to December 2018. The Credit Facility also has a pricing conversion feature, making pricing even more attractive should the Company become investment grade. The Credit Facility replaces the Company's previous $265 million secured credit facility.
"We view this as a major milestone for the Company, allowing us to convert to an unsecured structure while significantly reducing our overall cost of capital, enhancing our liquidity, and strengthening our balance sheet," said Jeff Edison, Chairman and CEO. "We appreciate the continued partnership with, and commitment from, our banking relationships as we continue to perform and execute on our strategy."
Devin Murphy, CFO, added, "We believe that this execution is indicative of the deep relationships that the Company has built within the capital markets community, evidenced by the broad base of capital commitments to this facility; we very much value that level of support and partnership."
Bank of America, N.A. is the administrative agent under the Credit Facility, while KeyBank National Association ("KeyBank") and Citibank, N.A. both serve as co-syndication agents. Merrill Lynch, Pierce Fenner & Smith Incorporated, KeyBank and CitiGroup Global Markets Inc. acted as joint lead arrangers for the Credit Facility. The lending syndicate also includes UnionBank, N.A.; JP Morgan Chase Bank, N.A.; Wells Fargo Bank, National Association; PNC Bank, National Association; and Deutsche Bank AG, New York Branch.
In addition to general corporate purposes, the Company intends to use proceeds from the Credit Facility to finance the acquisition of well-occupied grocery-anchored neighborhood shopping centers having a mix of national, credit worthy retailers selling necessity-based goods and services in strong markets throughout the United States.
About Phillips Edison – ARC Shopping Center REIT Inc.
Phillips Edison-ARC Shopping Center REIT Inc. is a public non-traded REIT that seeks to acquire and manage well-occupied grocery-anchored neighborhood shopping centers having a mix of national and regional retailers selling necessity-based goods and services, in strong demographic markets throughout the United States. The Company is co-sponsored by two industry leaders: Phillips Edison & Company, who has acquired over $2.3 billion in shopping centers throughout the United States, and AR Capital, LLC, a real estate investment program sponsor dedicated to governance best practices. As of January 6, 2014, the Company owned, directly or indirectly through a joint venture in which it has a controlling interest, and managed an institutional quality retail portfolio consisting of 83 grocery-anchored shopping centers totaling approximately 8.7 million square feet. For more information on the Company, please visit the website at www.phillipsedison-arc.com.
SOURCE Phillips Edison-ARC Shopping Center REIT Inc.