Phillips Edison & Co. Inc. has secured a 10-year, $200 million secured debt facility through Hartford Investment Management Company. The company intends to use the proceeds from the loan to prepay upcoming loan maturities, maturing in 2020 and 2021, and for general corporate purposes.
The 3.35 percent interest-only note is secured by 16 grocery-anchored shopping centers and extends the Company’s debt maturity profile to 5.1 years from 4.3 years at September 30, 2019. Together with this secured financing, the Company has refinanced a total of $575 million of debt over the past three months.
“Over the past three months, we have capitalized on the current interest rate environment through a series of refinancing activities,” commented John Caulfield, Chief Financial Officer of Phillips Edison and Company. “We are excited to build our relationship with HIMCO, closing on a secured 10-year fixed note and extending the maturity profile of our debt. Combined with the recent refinancing of two other term loans, our capital markets activity has improved our cost of capital and maintains our flexibility to capitalize on accretive long-term opportunities.”
Previously, in September 2019, the Company repriced a $200 million term loan, lowering the interest rate spread from 1.75 percent over LIBOR to 1.25 percent over LIBOR, while maintaining the current maturity of September 2024. In October, the Company repriced a $175 million term loan, lowering the interest rate spread from 1.75 percent over LIBOR to 1.25 percent over LIBOR, while maintaining the current maturity of October 2024. In total, the Company’s recent refinancing activities have reduced its weighted average interest rate by nine basis points to 3.46 percent.