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Agree Realty Corporation announced that it has completed a USD 350 million unsecured delayed-draw term loan with a maturity of 5.5 years. The loan includes a 12-month window for drawing funds and an accordion feature allowing an increase to USD 500 million. The company also put in place USD 350 million of forward-starting swaps to lock its borrowing cost at 4.02 %. Alongside this, Agree amended its existing USD 1.25 billion revolving credit facility and another term loan to align terms and remove the SOFR spread adjustment, strengthening its overall funding structure.
Agree Realty Corporation shared that it has closed a USD 350 million unsecured delayed-draw term loan with a maturity of 5.5 years. The agreement provides a 12-month period to draw the funds and includes an accordion feature that may increase the total borrowing capacity to USD 500 million. The loan is scheduled to mature in May 2031, offering the company long-term financial visibility. Advertisement
Ahead of this financing, Agree executed USD 350 million in forward-starting interest-rate swaps, fixing its borrowing cost at 4.02 %. The company noted that this rate reflects its current A- credit rating and would help maintain predictable interest expenses over the life of the loan.
Along with the new term loan, Agree amended two major credit facilities-its USD 1.25 billion senior unsecured revolving credit facility and its USD 350 million term loan due in January 2029. These changes include the removal of the SOFR credit-spread adjustment and other modifications to align the documents with the new loan structure. The updated terms are intended to simplify the borrowing framework and maintain consistency across the company?s debt portfolio.
Agree Realty stated that its overall liquidity currently stands at about USD 2.2 billion, supported by a staggered debt-maturity schedule with no significant maturities until 2028. The company continues to focus on maintaining a balanced and conservative capital structure, a practice it has followed over the years to manage expansion and refinancing needs.
As of the end of September 2025, the company owned 2,603 properties across all 50 states, covering roughly 53.7 million square feet of gross leasable area. Its portfolio mainly includes net-leased retail assets, and the company has consistently worked on strengthening the financial base supporting this portfolio.
The 12-month delayed-draw option gives Agree Realty time to evaluate future development or acquisition opportunities or refinance portions of existing debt when needed. The unsecured nature of the loan reflects lender confidence in the company?s operations and credit profile. The fixed interest rate and updated credit-facility terms also help provide more clarity on future financing costs.
Overall, this step adds to the company?s long-term stability and prepares it for steady deployment of capital based on market conditions and business requirements.
Source Reuters
5th Jun, 2025
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