Armada Hoffler Announces Closing of Inaugural Private Debt Placement
Armada Hoffler (NYSE: AHH) has successfully closed its inaugural private placement of $115 million in senior unsecured notes. The notes were structured in three tranches with maturities ranging from 3 to 7 years, featuring a blended interest rate of 5.86% and a weighted average maturity of 5.3 years.
The company plans to use the proceeds for general corporate purposes and debt refinancing. This strategic move follows Morningstar DBRS's reaffirmation of AHH's BBB credit rating with a stable outlook in January 2025, highlighting the company's improved leverage profile and diversified real estate portfolio.
Armada Hoffler (NYSE: AHH) ha completato con successo la sua prima collocazione privata di 115 milioni di dollari in obbligazioni senior non garantite. Le obbligazioni sono state strutturate in tre tranche con scadenze da 3 a 7 anni, con un tasso d'interesse medio ponderato del 5,86% e una durata media ponderata di 5,3 anni.
L'azienda intende utilizzare i proventi per scopi aziendali generali e per rifinanziare il debito. Questa mossa strategica segue la conferma del rating creditizio BBB con outlook stabile da parte di Morningstar DBRS a gennaio 2025, che evidenzia il miglioramento del profilo di leva finanziaria e il portafoglio immobiliare diversificato della società.
Armada Hoffler (NYSE: AHH) ha cerrado con éxito su colocación privada inaugural de 115 millones de dólares en bonos senior no garantizados. Los bonos se estructuraron en tres tramos con vencimientos de entre 3 y 7 años, con una tasa de interés combinada del 5,86% y un vencimiento promedio ponderado de 5,3 años.
La compañía planea utilizar los fondos para fines corporativos generales y refinanciamiento de deuda. Esta estrategia sigue a la reafirmación de la calificación crediticia BBB de AHH por Morningstar DBRS con perspectiva estable en enero de 2025, destacando el perfil de apalancamiento mejorado y la cartera inmobiliaria diversificada de la empresa.
Armada Hoffler (NYSE: AHH)는 1억 1,500만 달러 규모의 선순위 무담보 채권에 대한 첫 번째 사모 발행을 성공적으로 마무리했습니다. 이 채권은 3년에서 7년 만기의 세 가지 트랜치로 구성되었으며, 복합 이자율 5.86%과 가중 평균 만기 5.3년을 특징으로 합니다.
회사는 조달 자금을 일반 기업 목적 및 부채 재융자에 사용할 계획입니다. 이 전략적 조치는 2025년 1월 Morningstar DBRS가 AHH의 BBB 신용 등급을 안정적 전망과 함께 재확인한 데 따른 것으로, 회사의 개선된 레버리지 프로필과 다각화된 부동산 포트폴리오를 강조합니다.
Armada Hoffler (NYSE : AHH) a clôturé avec succès son premier placement privé de 115 millions de dollars en obligations senior non garanties. Les obligations ont été structurées en trois tranches avec des maturités allant de 3 à 7 ans, présentant un taux d'intérêt moyen pondéré de 5,86% et une durée moyenne pondérée de 5,3 ans.
L'entreprise prévoit d'utiliser les fonds pour des besoins généraux de l'entreprise et le refinancement de la dette. Cette démarche stratégique fait suite à la confirmation par Morningstar DBRS de la notation de crédit BBB d'AHH avec une perspective stable en janvier 2025, soulignant le profil d'endettement amélioré et le portefeuille immobilier diversifié de la société.
Armada Hoffler (NYSE: AHH) hat erfolgreich seine erste Privatplatzierung von 115 Millionen US-Dollar in ungesicherten Senior-Anleihen abgeschlossen. Die Anleihen wurden in drei Tranchen mit Laufzeiten von 3 bis 7 Jahren strukturiert und weisen einen gemischten Zinssatz von 5,86% sowie eine gewichtete durchschnittliche Laufzeit von 5,3 Jahren auf.
Das Unternehmen plant, die Erlöse für allgemeine Unternehmenszwecke und zur Umschuldung zu verwenden. Dieser strategische Schritt folgt auf die Bestätigung des BBB-Kreditratings von AHH durch Morningstar DBRS mit stabilem Ausblick im Januar 2025 und unterstreicht das verbesserte Verschuldungsprofil und das diversifizierte Immobilienportfolio des Unternehmens.
- Successful placement of $115 million in senior unsecured notes
- BBB credit rating reaffirmed by Morningstar DBRS with stable outlook
- Enhanced balance sheet flexibility through diversified capital sources
- Fixed interest rate of 5.86% provides predictable long-term financing costs
- Additional debt burden with new $115 million notes
- Interest expenses will increase due to the new debt obligations
VIRGINIA BEACH, Va., July 22, 2025 (GLOBE NEWSWIRE) -- Armada Hoffler (NYSE: AHH) (“Armada Hoffler” or the “Company”) announced the closing its inaugural private placement of
Proceeds from the offering will be used for general corporate purposes and to refinance existing debt.
“This offering provides long-term capital at a fixed rate and enhances our balance sheet flexibility,” said Matthew Barnes-Smith, Chief Financial Officer of Armada Hoffler. “We view this as a constructive step in our ongoing efforts to diversify capital sources and support our long-term strategy.”
In January 2025, Morningstar DBRS reaffirmed Armada Hoffler’s BBB credit rating and revised its outlook to stable, citing the Company’s improved leverage profile and diversified real estate portfolio.
The offer and sale of the notes and the related guarantees have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state or other jurisdiction and the notes may not be offered or sold in the United States or any other jurisdiction absent registration or an exemption from the registration requirements of the Securities Act and the applicable securities laws of any state or other jurisdiction. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities.
About Armada Hoffler
Armada Hoffler (NYSE: AHH) is a vertically integrated, self-managed real estate investment trust (“REIT”) with over four decades of experience developing, building, acquiring, and managing high-quality office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. We also provide general construction and development services to third-party clients, in addition to developing and building properties to be placed in our stabilized portfolio. Founded in 1979 by Daniel A. Hoffler, Armada Hoffler has elected to be taxed as a REIT for U.S. federal income tax purposes. For more information visit ArmadaHoffler.com.
Forward-Looking Statements
Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These statements relate to the Company’s the anticipated use of the net proceeds from the private placement of the notes. No assurance can be given that the net proceeds from the private placement will be used as indicated. The application of the net proceeds is subject to numerous conditions, many of which are beyond the control of the Company, including, market conditions, general economic conditions and other factors, including those set forth under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and those set forth in other documents filed by the Company from time to time with the Securities and Exchange Commission.
Contact:
Chelsea Forrest
Armada Hoffler
Vice President of Corporate Communications and Investor Relations
Email: CForrest@ArmadaHoffler.com
Phone: (757) 612-4248
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