FARMINGTON HILLS, Mich., Oct. 1, 2013 /PRNewswire/ -- Agree Realty Corporation (NYSE: ADC) today announced the closing of a new $35 million unsecured term loan. The new seven year unsecured financing matures September 29, 2020. The interest rate will be LIBOR plus 165 to 225 basis points. The Company also entered into an interest rate swap to fix LIBOR at 2.20% until maturity. Based on the Company's current leverage ratio, it anticipates the margin will be 165 basis points over LIBOR, for an initial all-in interest rate of 3.85% at closing including the impact of the interest rate swap. The term loan also includes a $35 million accordion feature to increase capacity to $70 million, subject to customary terms and conditions. The loan is prepayable without penalty after three years. The proceeds from this financing will be applied to amounts outstanding under the Company's unsecured revolving credit facility.
PNC Bank, National Association will act as Administrative Agent. PNC Capital Markets LLC will act as Sole Lead Arranger and Sole Bookrunner, and BMO Capital Markets will act as Syndication Agent. Also participating are Bank of Montreal, Chicago Branch and SunTrust Bank.
"We are extremely pleased to complete the closing of this financing. This transaction provides the Company with increased capacity to fund its acquisition, development and joint venture platforms," said Joey Agree, President and Chief Executive Officer. "We appreciate the strong support from our lending partners and remain focused on continuing to source additional net lease opportunities for our portfolio."
Agree Realty is primarily engaged in the acquisition and development of single tenant properties net leased to industry leading retail tenants. The Company currently owns and operates a portfolio of 128 properties, located in 33 states and containing approximately 3.8 million square feet of gross leasable space. The common stock of Agree Realty Corporation is listed on the New York Stock Exchange under the symbol "ADC".
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