CINCINNATI – (COMMERCIAL THREAD) – Phillips Edison & Company, Inc. (PECO or the Company), an internally managed real estate investment trust (REIT) and one of the world’s largest owners and operators of grocery store anchored malls, announced today hui having secured a 10-year, $ 200 million secured debt facility through Hartford Investment Management Company (HIMCO). The Company intends to use the loan proceeds to prepay future loan maturities, maturing in 2020 and 2021, and for general corporate purposes.
The 3.35% interest-only note is guaranteed by 16 shopping malls anchored in grocery stores and extends the Company’s debt maturity profile to 5.1 years, down from 4.3 years as at September 30, 2019. With this secured financing, the Company refinanced a total of $ 575 million. of debt over the past three months.
âOver the past three months, we have taken advantage of the current interest rate environment through a series of refinancing activities,â commented John Caulfield, CFO of Phillips Edison and Company. âWe are delighted to build our relationship with HIMCO, to conclude on a fixed 10-year guaranteed note and to extend 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 long-term accretive opportunities. ”
Previously, in September 2019, the Company revised the price of a term loan by $ 200 million, lowering the interest rate spread from 1.75% over LIBOR to 1.25% over LIBOR, while maintaining the current maturity of September 2024. In October, the Company revised the price of a $ 175 million credit term, lowering the interest rate spread by 1.75% over the LIBOR at 1.25% against 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%.
KeyBank Real Estate Capital and Fifth Third Bank acted as advisers to the Company for this transaction.
About Phillips Edison & Company
Phillips Edison & Company, Inc. (PECO), an internally managed REIT, is one of the largest owners and operators of grocery store anchored malls in the country. CEEC’s diverse portfolio of busy neighborhood shopping centers includes a mix of national and regional retailers selling essential goods and services in fundamentally strong markets across the United States. Through its vertically integrated operating platform, the Company manages a portfolio of 330 properties, including 294 wholly owned properties representing approximately 33.2 million square feet in 32 states (as of September 30, 2019). PECO has generated strong operating results over its more than 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 shopping experiences that are rooted in the grocery store and improving the communities it serves, one hub at a time. For more information, please visit www.phillipsedison.com.
About Hartford Investment Management Company
At Hartford Investment Management Company (HIMCO) our only business is asset management. Our investment philosophy is centered on the belief that markets overreact and risk can become mispriced at global, interest rate, inflation, industry and security levels. Identifying and leveraging these relative value opportunities is critical to delivering the tailored results our clients expect. We have a long history of delivering innovative, client-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 in the fixed income, equities and alternatives markets and more than 125 investment professionals who had an average of 17 years of experience in the investment sector over several cycles.
Certain statements contained in this press release from Phillips Edison & Company, Inc. (“we”, the “company”, “our” or “our”) other than historical facts may be considered as forward-looking statements within the meaning of the Section 27A of the Securities Act of 1933, as amended (the âSecurities Actâ); and Section 21E of the Securities Exchange Act of 1934, as amended (the âExchange Actâ). We intend that all such forward-looking statements be covered by the safe harbor provisions applicable to forward-looking statements contained in such laws. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “anticipate”, “estimate”, ” believe â,â continue â,â seek â,â goal â,â goal â,â strategy â,â plan â,â should â,â could â,â potential âor other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the filing date of this report with the United States Securities and Exchange Commission (âSECâ). Such statements include, in particular, statements about our plans, capital structure, leverage, strategies and prospects, and are subject to certain risks and uncertainties, including known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. . These risks include, but are not limited to, (i) changes in national, regional or local economic climates; (ii) local market conditions, including an oversupply of space or reduced demand for properties similar to those in our portfolio; (iii) vacant housing, changes in market rental rates and the need to periodically repair, renovate and re-let premises; (iv) changes in interest rates and the availability of permanent mortgage financing; (v) competition from other available properties and the attractiveness of properties in our portfolio to our tenants; (vi) the financial stability of tenants, including the ability of tenants to pay rent; (vii) changes in tax, real estate, environmental and zoning laws; (viii) the concentration of our portfolio in a limited number of industries, geographic areas or investments; and (ix) any other risk included in the documents filed by the Company with the SEC. Therefore, these statements are not intended to be a guarantee of our performance in future periods.
See Part I, Point 1A. Risk factors from our 2018 Annual Report on Form 10-K, filed with the SEC on March 13, 2019, and Part II, Section 1A. Risk factors in our Quarterly Report on Form 10-Q, filed with the SEC on November 7, 2019, and any subsequent filing for a discussion of some of the risks and uncertainties, but not all of the risks and uncertainties, that could cause actual results differ materially from those presented in our forward-looking statements. Except as required by law, we assume no obligation to update or revise any forward-looking statements contained in this press release.