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EastGroup Properties and its subsidiary have secured an unsecured term loan of USD 250 million from PNC Bank and partner lenders, split into two tranches maturing in 2030 and 2031. The loan is priced at Daily Simple SOFR plus 0.85%, with interest rate swaps fixing the effective rate at 4.15% per year. The company also amended its USD 625 million revolving credit facility, removing a 0.10% adjustment on SOFR-based borrowings. These moves enhance financial flexibility and support continued growth in industrial and distribution properties across key U.S. Sunbelt markets.
EastGroup Properties, Inc. and its subsidiary have entered into an unsecured term loan agreement worth USD 250?million with PNC Bank, National Association, and other lenders, according to a recent SEC filing. The loan is divided into two tranches: Tranche A of USD 100?million maturing on April 30, 2030, and Tranche B of USD 150?million maturing on March 14, 2031. Advertisement
The borrowing is based on the Daily Simple SOFR (Secured Overnight Financing Rate) plus a margin of 0.85%. To manage interest rate risks, EastGroup executed interest rate swaps that effectively lock in a weighted average fixed rate of 4.15% per annum.
Alongside this new facility, the company also amended its existing USD 625?million unsecured revolving credit facility, which is due in July 2028. The amendment removed a 0.10% upward adjustment on prior SOFR-based borrowings. This adjustment removal also applies to several other unsecured credit lines and term loans, including working capital and multiple term loans maturing between 2026 and 2030.
EastGroup Properties is a self-administered equity REIT that focuses on acquiring, developing, and managing industrial and distribution properties across major U.S. Sunbelt markets such as Texas, Florida, California, Arizona, and North Carolina. Their portfolio primarily includes distribution facilities ranging from 20,000 to 100,000 square feet, catering to growing demand in logistics and industrial infrastructure.
The new loan agreement and revised credit facilities aim to provide the company with greater financial flexibility while managing long-term borrowing costs. This financial structuring supports its ongoing operations and strategic growth in high-demand industrial real estate markets.
Source Reuters
5th Jun, 2025
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