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EastGroup Properties, Inc. (NYSE:EGP) announced Monday that it has entered into a $250 million unsecured term loan agreement, according to a statement based on a recent SEC filing. The industrial REIT, currently valued at $9.67 billion in market capitalization, operates with a moderate level of debt according to InvestingPro data, with a debt-to-equity ratio of 0.43.
The agreement, signed November 19 by EastGroup Properties and its subsidiary EastGroup Properties, L.P., is with PNC Bank, National Association as Agent, Regions Bank as Syndication Agent, and TD Bank, N.A. as Documentation Agent, among others. The loan is split into two tranches: Tranche A is a $100 million unsecured term loan maturing April 30, 2030, and Tranche B is a $150 million unsecured term loan maturing March 14, 2031.
Borrowings will bear interest at a rate chosen by the company, including the Base Rate, Term Secured Overnight Financing Rate (SOFR), or Daily Simple SOFR, plus a margin determined by EastGroup’s credit ratings and leverage ratio. As of November 19, the company elected the Daily Simple SOFR option with a margin of 0.85%. Interest rate swaps were executed to convert the floating rate to a fixed rate, resulting in a weighted average fixed interest rate of 4.15% per year.
EastGroup Properties also amended its $625 million unsecured revolving credit facility maturing July 31, 2028, to remove a 0.10% upward interest rate adjustment for SOFR loans. No other material changes were made to the terms of the agreement.
Additionally, amendments were made to several of the company’s other unsecured credit facilities and term loans, including its $50 million Unsecured Working Cash Credit Facility and various unsecured term loans with maturities ranging from 2026 to 2030. These amendments also removed the 0.10% upward interest rate adjustment for SOFR loans, with no other significant changes reported.
All information is based on a statement from EastGroup Properties, Inc. as disclosed in a recent SEC filing.
In other recent news, EastGroup Properties reported its third-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $1.26, higher than the forecasted $1.24. The company also exceeded revenue projections, reporting $182.14 million compared to the expected $181.14 million. Additionally, Truist Securities raised its price target for EastGroup Properties to $188.00 from $177.00 while maintaining a Buy rating on the stock. Truist also adjusted its 2025 funds from operations (FFO) estimate slightly to $8.98 per share, aligning with the high end of management’s guidance range and just above the consensus estimate of $8.96. These developments highlight the company’s financial performance and analyst confidence in its future outlook.
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