ROYAL
OAK, Mich., May 6, 2024
/PRNewswire/ -- Agree Realty Corporation (NYSE: ADC) (the
"Company") today announced that its operating partnership, Agree
Limited Partnership (the "Operating Partnership"), priced a public
offering of $450 million of its
5.625% senior unsecured notes due 2034 (the "Notes"). The public
offering price for the Notes was 98.827% of the principal amount
for an effective yield to maturity of 5.779%. The Notes will be
senior unsecured obligations of the Operating Partnership,
guaranteed by the Company and certain of their subsidiaries. This
offering is expected to close on May 13,
2024, subject to the satisfaction of customary closing
conditions.
The Company expects to use the net proceeds from
this offering for general corporate purposes, including to reduce
amounts outstanding under its senior unsecured revolving credit
facility and to fund property acquisitions and development
activity.
"This offering positions our Company for
continued growth and bolsters our liquidity position to over
$1.3 billion, providing us ample
runway to execute on investment opportunities," said Peter Coughenour, Chief Financial Officer. "Our
weighted-average debt maturity has been extended to approximately 7
years excluding the unsecured revolving credit facility, with no
material debt maturities until 2028. In addition, the forward
starting swaps that we entered into reduced the effective interest
rate of the Notes and further demonstrate our prudent balance sheet
management."
PNC Capital Markets LLC, Citigroup, J.P. Morgan,
Wells Fargo Securities, BofA Securities and Mizuho Securities acted
as joint book-running managers for the offering. Morgan Stanley,
Raymond James, Regions Securities
LLC, Stifel and US Bancorp served as co-managers for the
offering.
A registration statement relating to the
securities has been filed with the U.S. Securities and Exchange
Commission (the "SEC") and became automatically effective under the
Securities Act of 1933, as amended, upon filing with the SEC.
Before you invest, you should read the prospectus in that
registration statement and other documents the issuer has filed
with the SEC for more complete information about the issuer and
this offering. You may get these documents for free by visiting
EDGAR on the SEC Web site at www.sec.gov, or by contacting: PNC
Capital Markets LLC, Attention Debt Capital Markets, Fixed Income
Transaction Execution, 300 Fifth Avenue, 10th Floor, Pittsburgh, PA 15222, at 1-855-881-0697;
Citigroup Global Markets Inc., c/o Broadridge Financial Solutions,
1155 Long Island Avenue, Edgewood,
NY 11717, at 1-800-831-9146 or email: prospectus@citi.com;
J.P. Morgan Securities LLC, Attention: Investment Grade Syndicate
Desk, 383 Madison Avenue, New York,
NY 10179, by telephone (collect) at 1-212-834-4533; or Wells
Fargo Securities, LLC, Attention: WFS Customer Service, 608 2nd
Avenue South, Suite 1000, Minneapolis,
MN 55402, at 1-800-645-3751 or email:
wfscustomerservice@wellsfargo.com.
The offering of the securities was made only by
means of a prospectus supplement and accompanying prospectus, which
are on file with the SEC. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy any
securities nor shall there be any sale of these securities in any
state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
About Agree Realty Corporation
Agree Realty Corporation is a publicly traded
real estate investment trust that is RETHINKING
RETAIL through the acquisition and development of properties
net leased to industry-leading, omni-channel retail tenants. As of
March 31, 2024, the Company owned and
operated a portfolio of 2,161 properties, located in 49 states and
containing approximately 44.9 million square feet of gross leasable
area. The Company's common stock is listed on the New York Stock
Exchange under the symbol "ADC".
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended (the "Securities Act") and Section 21E of the
Securities Exchange Act of 1934, as amended (the "Exchange Act").
The Company intends such forward-looking statements to be covered
by the safe harbor provisions for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995
and includes this statement for purposes of complying with these
safe harbor provisions. No assurance can be given that the offering
discussed above will be completed on the terms described or at all,
or that the net proceeds of the offering will be used as indicated.
Forward-looking statements, which are based on certain assumptions
and describe the Company's future plans, strategies and
expectations, are generally identifiable by use of the words
"anticipate," "estimate," "should," "expect," "believe," "intend,"
"may," "will," "seek," "could," "project" or similar expressions.
You should not rely on forward-looking statements since they
involve known and unknown risks, uncertainties and other factors
which are, in some cases, beyond the Company's control and which
could materially affect the Company's results of operations,
financial condition, cash flows, performance or future achievements
or events. Currently, some of the most significant factors, include
the potential adverse effect of ongoing worldwide economic
uncertainties and increased inflation and interest rates on the
financial condition, results of operations, cash flows and
performance of the Company and its tenants, the real estate market
and the global economy and financial markets. The extent to which
these conditions will impact the Company and its tenants will
depend on future developments, which are highly uncertain and
cannot be predicted with confidence. Moreover, investors are
cautioned to interpret many of the risks identified in the risk
factors discussed in the Company's Annual Report on Form 10-K and
subsequent quarterly reports filed with the Securities and Exchange
Commission (the "SEC"), as well as the risks set forth below, as
being heightened as a result of the ongoing and numerous adverse
impacts of the macroeconomic environment. Additional important
factors, among others, that may cause the Company's actual results
to vary include the general deterioration in national economic
conditions, weakening of real estate markets, decreases in the
availability of credit, increases in interest rates, adverse
changes in the retail industry, the Company's continuing ability to
qualify as a REIT and other factors discussed in the Company's
reports filed with the SEC. The forward-looking statements included
in this press release are made as of the date hereof. Unless
legally required, the Company disclaims any obligation to update
any forward-looking statements, whether as a result of new
information, future events, changes in the Company's expectations
or assumptions or otherwise.
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SOURCE Agree Realty Corporation