The Phillips Edison loan facility has closed at $350 million, with the shopping-center owner’s subsidiary borrowing $175 million initially to repay existing debt. The unsecured facility matures on October 23, 2029, the company announced on October 26, 2026.
Key Takeaways
- The remaining $175 million is available to draw on or before April 21, 2027.
- The loan initially carries an annual interest rate of SOFR plus 0.80%, subject to future adjustment.
- An uncommitted feature could allow up to $450 million in additional borrowing.
Phillips Edison loan terms and repayment
Phillips Edison Grocery Center Operating Partnership I, L.P., a subsidiary of Phillips Edison & Company, is the borrower. It may prepay the loan before maturity without a premium or penalty.
Future pricing can change based on the company’s credit ratings and leverage ratio. The uncommitted accordion feature could increase total term loans to as much as $800 million, though the additional $450 million is not committed.
| Item | Details |
|---|---|
| Facility size | $350 million |
| Initial borrowing | $175 million at closing |
| Remaining availability | $175 million on or before April 21, 2027 |
| Initial annual interest rate | SOFR plus 0.80%, subject to adjustment |
| Maturity | October 23, 2029 |
Existing debt paid down
The initial $175 million borrowing was used to pay down the subsidiary’s outstanding $161.8 million term loan and balances under its $1 billion revolving credit facility.
Chief Financial Officer John Caulfield said the new loan extends the company’s debt maturity profile and provides flexibility for investment activity. KeyBanc Capital Markets and Regions Capital Markets were joint bookrunners, and KeyBank National Association was administrative agent.
Next milestone
The next confirmed deadline is April 21, 2027, by which the subsidiary may draw the remaining $175 million.
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