Agree Realty Announces Pricing of $400 Million of 5.600% Senior Unsecured Notes Due 2035
Agree Realty Corporation (NYSE: ADC) has announced the pricing of $400 million in senior unsecured notes due 2035 through its operating partnership. The notes carry a 5.600% interest rate with an effective yield to maturity of 5.692%. Including prior hedging activity, the all-in interest rate is approximately 5.35%.
The offering is expected to close on May 23, 2025. The company plans to use the proceeds for general corporate purposes, including debt reduction, property acquisitions, and development activities. The offering increases ADC's liquidity position to a record $2.6 billion. Notably, the company's balance sheet shows no material debt maturities until 2028.
Agree Realty Corporation (NYSE: ADC) ha annunciato il prezzo di 400 milioni di dollari in obbligazioni senior non garantite con scadenza nel 2035 tramite la sua partnership operativa. Le obbligazioni prevedono un tasso d'interesse del 5,600% con un rendimento effettivo a scadenza del 5,692%. Inclusa l'attività di copertura precedente, il tasso d'interesse complessivo è di circa il 5,35%.
La sottoscrizione è prevista per il 23 maggio 2025. La società intende utilizzare i proventi per scopi aziendali generali, tra cui la riduzione del debito, acquisizioni immobiliari e attività di sviluppo. L'offerta porta la liquidità di ADC a un livello record di 2,6 miliardi di dollari. È importante sottolineare che il bilancio della società non presenta scadenze di debito significative fino al 2028.
Agree Realty Corporation (NYSE: ADC) ha anunciado la fijación del precio de 400 millones de dólares en bonos senior no garantizados con vencimiento en 2035 a través de su sociedad operativa. Los bonos tienen una tasa de interés del 5,600% con un rendimiento efectivo hasta el vencimiento del 5,692%. Incluyendo actividades de cobertura previas, la tasa de interés total es aproximadamente del 5,35%.
Se espera que la oferta cierre el 23 de mayo de 2025. La compañía planea usar los ingresos para fines corporativos generales, incluyendo reducción de deuda, adquisiciones de propiedades y actividades de desarrollo. La oferta incrementa la posición de liquidez de ADC a un récord de 2,6 mil millones de dólares. Cabe destacar que el balance de la compañía no muestra vencimientos significativos de deuda hasta 2028.
Agree Realty Corporation (NYSE: ADC)는 운영 파트너십을 통해 2035년 만기 4억 달러 규모의 선순위 무담보 채권 가격을 발표했습니다. 이 채권은 5.600%의 이자율을 가지며 만기까지의 유효 수익률은 5.692%입니다. 이전 헤지 활동을 포함하면 총 이자율은 약 5.35%입니다.
이번 발행은 2025년 5월 23일에 마감될 예정입니다. 회사는 조달 자금을 일반 기업 목적, 부채 상환, 부동산 인수 및 개발 활동에 사용할 계획입니다. 이번 발행으로 ADC의 유동성은 사상 최대인 26억 달러로 증가했습니다. 특히 회사 재무제표에는 2028년까지 중요한 부채 만기가 없습니다.
Agree Realty Corporation (NYSE : ADC) a annoncé la tarification de 400 millions de dollars en obligations senior non garanties arrivant à échéance en 2035 via son partenariat opérationnel. Ces obligations portent un taux d'intérêt de 5,600% avec un rendement effectif à maturité de 5,692%. En incluant les opérations de couverture antérieures, le taux d'intérêt global est d'environ 5,35%.
L'offre devrait se clôturer le 23 mai 2025. La société prévoit d'utiliser les fonds pour des besoins généraux d'entreprise, notamment la réduction de la dette, des acquisitions immobilières et des activités de développement. Cette opération porte la trésorerie d'ADC à un niveau record de 2,6 milliards de dollars. Il est à noter que le bilan de la société ne présente pas d'échéances de dette significatives avant 2028.
Agree Realty Corporation (NYSE: ADC) hat die Preisfestsetzung von 400 Millionen US-Dollar an unbesicherten Senior Notes mit Fälligkeit 2035 über ihre Betriebspartnerschaft bekannt gegeben. Die Anleihen tragen einen Zinssatz von 5,600% mit einer effektiven Rendite bis zur Fälligkeit von 5,692%. Unter Einbeziehung vorheriger Absicherungsgeschäfte liegt der Gesamtkapitalzins bei etwa 5,35%.
Der Abschluss des Angebots wird für den 23. Mai 2025 erwartet. Das Unternehmen plant, die Erlöse für allgemeine Unternehmenszwecke zu verwenden, einschließlich Schuldenabbau, Immobilienerwerb und Entwicklungsaktivitäten. Das Angebot erhöht die Liquiditätsposition von ADC auf einen Rekordwert von 2,6 Milliarden US-Dollar. Bemerkenswert ist, dass die Bilanz des Unternehmens bis 2028 keine wesentlichen Schuldenfälligkeiten aufweist.
- Record liquidity position of $2.6 billion enhances growth capabilities
- No material debt maturities until 2028, indicating strong balance sheet
- Favorable all-in interest rate of 5.35% achieved through hedging activity
- Extended weighted-average debt maturity strengthens financial position
- Additional $400 million debt burden increases company's leverage
- Higher interest rate environment results in 5.6% coupon rate
Insights
Agree Realty's new $400M bond offering strengthens its balance sheet with $2.6B liquidity and extends debt maturities past 2028.
Agree Realty (ADC) has priced a
The company's liquidity position will increase to a record
What's particularly notable about this offering is how it strengthens the company's debt maturity profile. The new 2035 notes extend the weighted-average debt maturity, creating what management describes as a "fortress balance sheet" with no material debt maturities until 2028. This prudent liability management gives ADC a three-year runway before facing any significant refinancing needs.
For a real estate investment trust (REIT) like Agree Realty, maintaining a strong balance sheet with well-laddered debt maturities is crucial for operational stability and growth capacity. This offering demonstrates management's forward-thinking approach to capital structure management, particularly as they position themselves for continued portfolio expansion in 2025 and beyond.
The transaction has attracted strong institutional support with major financial institutions including J.P. Morgan, Mizuho, PNC Capital Markets, and Wells Fargo Securities serving as joint book-running managers, indicating confidence in ADC's financial position and business model.
Inclusive of Prior Hedging Activity the All-In Interest Rate of the Notes is
The Company expects to use the net proceeds from this offering for general corporate purposes, including to reduce outstanding indebtedness, and to fund property acquisitions and development activity.
"This offering further increases our liquidity position to a record of approximately
J.P. Morgan, Mizuho, PNC Capital Markets LLC, Wells Fargo Securities, BofA Securities and Citigroup acted as joint book-running managers for the offering. Regions Securities LLC, US Bancorp, Morgan Stanley, SMBC Nikko, Raymond James and Stifel served as co-managers for the offering.
A registration statement relating to the securities has been filed with the
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, 2025, the Company owned and operated a portfolio of 2,422 properties, located in all 50 states and containing approximately 50.3 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
FAQ
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