Phillips Edison Grocery Center REIT II Inc., a publicly registered non-traded real estate investment trust, and operating partnership have closed on a new 7-year, $200 million unsecured term loan facility.
The facility lenders include Capital One N.A as administrative agent, and Fifth Third Bank, U.S. Bank N.A., Regions Bank, Associated Bank N.A., First Tennessee Bank N.A., First Merchants Bank, and First Financial Business Capital as co-syndication agents.
Proceeds from the term loan will be used to pay down the company’s revolving line of credit, as well as for general corporate purposes. The loan will bear interest at LIBOR plus 1.70 percent to 2.55 percent depending on the company’s leverage ratio.
“We are pleased to announce the closing of this 7-year unsecured term loan,” said Devin Murphy, chief financial officer of Phillips Edison Grocery Center REIT II. “The loan is a strategic component of our capital structure that enhances our liquidity profile while adding incremental term to our debt structure at an attractive cost. We continue to focus on maintaining a low risk, high quality balance sheet and want to thank our lending partners for their continued support.”
Phillips Edison Grocery Center REIT II invests in grocery-anchored neighborhood shopping centers having a mix of national and regional retailers selling necessity-based goods and services. The offering was declared effective in November 2013 and closed in September 2015 after raising $1.1 billion in investor equity. The company currently owns a retail portfolio of 80 properties purchased for approximately $1.6 billion, according to Summit Investment Research.