Phillips Edison & Company Secures 10-Year $200 Million Debt Facility
December 23, 2019
Phillips Edison & Company, Inc. (PECO or the Company), an internally-managed real estate investment trust (REIT) and one of the nation’s largest owners and operators of grocery-anchored shopping centers, today announced that it has secured a 10-year, $200 million secured debt facility through Hartford Investment Management Company (HIMCO). The Company intends to use the proceeds from the loan to prepay upcoming loan maturities, maturing in 2020 and 2021, and for general corporate purposes.
The 3.35 percent interest-only note is secured by 16 grocery-anchored shopping centers and extends the Company’s debt maturity profile to 5.1 years from 4.3 years at September 30, 2019. Together with this secured financing, the Company has refinanced a total of $575 million of debt over the past three months.
“Over the past three months, we have capitalized on the current interest rate environment through a series of refinancing activities,” commented John Caulfield, Chief Financial Officer of Phillips Edison and Company. “We are excited to build our relationship with HIMCO, closing on a secured 10-year fixed note and extending the maturity profile of our debt. Combined with the recent refinancing of two other term loans, our capital markets activity has improved our cost of capital and maintains our flexibility to capitalize on accretive long-term opportunities.”
Previously, in September 2019, the Company repriced a $200 million term loan, lowering the interest rate spread from 1.75 percent over LIBOR to 1.25 percent over LIBOR, while maintaining the current maturity of September 2024. In October, the Company repriced a $175 million term loan, lowering the interest rate spread from 1.75 percent over LIBOR to 1.25 percent over LIBOR, while maintaining the current maturity of October 2024. In total, the Company’s recent refinancing activities have reduced its weighted average interest rate by nine basis points to 3.46 percent.
KeyBank Real Estate Capital and Fifth Third Bank served as the Company’s advisors for this transaction.
About Phillips Edison & Company
Phillips Edison & Company, Inc. (PECO), an internally-managed REIT, is one of the nation’s largest owners and operators of grocery-anchored shopping centers. PECO’s diversified portfolio of well-occupied neighborhood shopping centers features a mix of national and regional retailers selling necessity-based goods and services in fundamentally strong markets throughout the United States. Through its vertically-integrated operating platform, the Company manages a portfolio of 330 properties, including 294 wholly-owned properties comprising approximately 33.2 million square feet across 32 states (as of September 30, 2019). PECO has generated strong operating results over its 28+ year history and has partnered with leading institutional commercial real estate investors including TPG Real Estate and The Northwestern Mutual Life Insurance Company. The Company remains exclusively focused on creating great grocery-anchored shopping experiences and improving the communities it serves one center at a time. For more information, please visit www.phillipsedison.com.
About Hartford Investment Management Company
At Hartford Investment Management Company (HIMCO), our sole business is asset management. Our investment philosophy is centered on the belief that markets overreact, and risk can become mispriced at the global, interest rate, inflation, sector and security levels. Identifying and exploiting these relative-value opportunities is key to delivering the tailored outcomes our clients expect. We have a long history of providing innovative, customer-focused investment strategies on behalf of The Hartford, as well as Retail and Institutional clients. As of September 30, 2019, HIMCO had approximately $98 billion in assets under management across the fixed income, equity and alternatives markets and more than 125 investment professionals that averaged 17 years of investment industry experience across multiple cycles.
Source: Northwestern Mutual Life Insurance Co. Press Release
