Tanger Inc. Extends Credit Lines and Lowers Interest Rates

By Tamara Parker • Monday, April 15 15:17 • Permanent Link

Tanger Inc. (NYSE: SKT) has made significant amendments and extensions to its unsecured lines of credit, as announced in a recent press release. The company's operating partnership, Tanger Properties Limited Partnership, has extended the maturity of its unsecured lines of credit to April 2028, with options to extend for an additional year to April 2029. This extension includes an increase in borrowing capacity to $620 million from $520 million, with the potential to further increase total borrowing capacity to $1.2 billion, subject to lender approval.

One of the notable improvements is the revised ratings-based pricing grid, which includes a reduction of 15 basis points at Tanger's current level. This is a significant change that will impact the company's interest expenses and overall financial position.

Tanger Inc. also emphasized the maintenance of all financial covenant thresholds, indicating a commitment to financial discipline and stability. With the support of prominent financial institutions such as BofA Securities, Wells Fargo Securities, Truist Securities, TD Bank, and U.S. Bank National Association, the company has strengthened its liquidity and financial flexibility.

The press release highlighted the company's appreciation for the continued strong support from its lender group and emphasized the strategic importance of these amendments in enhancing Tanger's liquidity, reducing interest expenses, and extending its maturity. These changes are expected to provide the company with enhanced flexibility to pursue its growth initiatives while maintaining a strong credit profile.

Tanger Inc., a publicly traded REIT since 1993, operates 38 outlet centers, one adjacent managed center, and one open-air lifestyle center, comprising over 15 million square feet across 20 U.S. states and Canada. This significant extension and increase in unsecured lines of credit reflect the company's commitment to long-term growth strategies and value creation for its stakeholders. The market has reacted to these announcements by moving the company's shares -1.0% to a price of $26.5. If you want to know more, read the company's complete 8-K report here.

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