Skip to content

New Unsecured Credit Facility for Phillips-Edison-ARC Shopping Center REIT, Inc.

Phillips Edison-ARC Shopping Center REIT, Inc. (the Company) announced today that on December 18, 2013 it entered into an unsecured credit facility that provides aggregate revolving loan borrowings of up to $350 million. It is initially priced at 130 basis points over LIBOR, based on the Company’s current leverage ratio. The company may increase availability under the credit facility to up to $600 million, through an accordion feature that is subject to certain conditions. The Revolving Credit Facility includes a sublimit of $35 million for swing line loans and a sublimit of $35 million for letters of credit.

The credit facility has a four year term that matures in December 2017, but there are also two 6-month extension options that could extend the maturity date to December 2018. It also has a pricing conversion feature and replaces the Company’s previous $265 million secured credit facility. The administrative agent of the credit facility is Bank of America, with KeyBank and CitiBank as co-syndication agents along with certain other lenders. Merrill Lynch, Pierce Fenner & Smith Incorporated, KeyBank and CitiGroup Global Markets Inc. acted as joint lead arrangers for the Credit Facility, with the lending syndicate also including 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.

Jeff Edison, the Company’s Chairman and CEO commented, “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.” He continued, “We appreciate the continued partnership with, and commitment from, our banking relationships as we continue to perform and execute on our strategy.”

The proceeds from the credit facility will go toward the Company’s purpose of acquiring well-occupied, grocery-anchored shopping centers that have national, credit-worthy retailers in strong U.S. markets. As of December 13, 2013, the Company’s portfolio was comprised of 72 properties in 21 states, with an aggregate purchase price of $1.1 billion. The fund is closed to all new investments.