Urban Edge Properties (NYSE: UE) has recently announced an increase in its borrowing capacity by $150 million, bringing the total to $950 million with an amended and extended credit facility and $250 million of delayed-draw term loans.
The new unsecured credit facilities consist of an unsecured revolving credit facility that has been reduced from $800 million to $700 million, with an extended maturity date from February 2027 to June 2030, along with two 6-month extension options. Additionally, there are $250 million of delayed-draw term loan facilities split into $125 million 5-year and 7-year components, with the 5-year loan maturing in June 2031 and the 7-year loan maturing in January 2033.
Borrowings under the revolving credit facility bear interest at a rate of SOFR plus a spread determined by the Company's leverage ratio, currently equating to SOFR plus 1.00%, with an annual facility fee of 0.15%, subject to adjustment based on the current leverage ratio as defined in the facility agreement.
The credit facilities also include accordion features, allowing the company to increase the maximum amount available to a total of $1.275 billion, subject to lender consent. The Term Loans have a delayed-draw feature allowing multiple drawdowns for twelve months after closing, bearing interest at SOFR plus a spread determined by the Company's leverage ratio, currently equating to SOFR plus 1.15% for the 5-year term loan and SOFR plus 1.50% for the 7-year term loan.
As of now, no amounts have been drawn on the line of credit or on the Term Loans. The Company anticipates using future proceeds for working capital purposes as it executes its growth plans.
The Joint Lead Arrangers and Joint Bookrunners for the revolving credit facility are Wells Fargo Securities, LLC and PNC Capital Markets LLC. The Passive Joint Lead Arrangers are TD Securities (USA) LLC, Truist Securities Inc., and U.S. Bank National Association. Wells Fargo Bank, National Association will continue to be the Administrative Agent for the revolving credit facility, and PNC Bank, National Association will continue to be the Syndication Agent. Bank of America, N.A., Goldman Sachs Bank USA, JPMorgan Chase Bank, N.A., and Morgan Stanley Bank, N.A., are also participants in the revolving credit facility.
Wells Fargo Securities, LLC is the Administrative Agent and Sole Bookrunner for the 5-year term loan, while PNC Bank, National Association is the Administrative Agent for the 7-year term loan, with PNC Capital Markets LLC as a Lead Arranger and Sole Bookrunner.
Urban Edge Properties is a NYSE listed real estate investment trust focused on owning, managing, acquiring, developing, and redeveloping retail real estate in urban communities, primarily in the Washington, D.C. to Boston corridor. The company owns 73 properties totaling 17.2 million square feet of gross leasable area. Following these announcements, the company's shares moved 1.61%, and are now trading at a price of $18.96. For more information, read the company's full 8-K submission here.
