Phillips Edison & Company amends credit agreements

Phillips Edison & Company, Inc. (NASDAQ:PECO), a real estate investment trust (REIT), announced that it has entered into amendments to its credit agreements with three major financial institutions.

The company, along with its operating partnership Phillips Edison Grocery Center Operating Partnership I, L.P., made conforming changes to its credit agreements with Bank of America, N.A., KeyBank National Association, and Capital One (NYSE:COF), National Association. These amendments are in relation to modifications previously made to the company’s credit agreement with PNC Bank, National Association.

Specifically, Phillips Edison & Company and the Partnership executed the first amendments to their respective credit agreements originally dated July 31, 2023. The amendments with Bank of America, KeyBank, and Capital One were necessary to align with the changes made in the agreement with PNC Bank.

The details of these amendments, which encompass various financial and operational terms, have been filed with the U.S. Securities and Exchange Commission (SEC) and are incorporated by reference into the company’s Form 8-K. The modifications to the credit agreements are part of the company’s ongoing financial management strategies.

Phillips Edison & Company, headquartered in Cincinnati, Ohio, is a REIT specializing in the ownership and management of grocery-anchored shopping centers. The company’s portfolio includes a diverse range of properties across the United States.

The full text of each credit agreement amendment has been made available in the exhibits attached to the Form 8-K, providing transparency to shareholders and the general public. This information is based on the press release statement and the SEC filing by Phillips Edison & Company.

In other recent news, Phillips Edison & Company has made significant financial strides by expanding its Revolving Credit Facility to $1 billion.

This move, completed in partnership with PNC Bank and other lenders, extends the maturity date to January 9, 2029. The interest rate is now set at Term SOFR or Daily Simple SOFR, with a margin ranging from 0.725% to 1.400%, dependent on the company’s credit rating, leverage ratio, and sustainability metrics. A facility fee will also be imposed, which is based on the company’s credit rating.

The updated agreement allows the Operating Partnership to request increases in the revolving credit commitments or any existing term loan, subject to certain conditions. This strategic financial restructuring is designed to provide Phillips Edison with additional liquidity and flexibility in the market. It’s important to note that the company must adhere to financial covenants such as maintaining a maximum leverage ratio and a minimum fixed charge coverage ratio.

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