CINCINNATI—As reported in GlobeSt.com, Phillips Edison & Company and AR Capital, LLC sponsor Phillips Edison-ARC Shopping Center REIT Inc., one of the most active buyers of shopping centers in the US, and are also raising equity for another non-traded REIT, called Phillips Edison-ARC Grocery Center REIT II. And yesterday, officials from the latter said they had entered into a credit facility that provides aggregate revolving loan borrowings of up to $200 million. Due to an accordion feature, the trust can increase the facility to up to $700 million.
Company officials say they will use the proceeds from the facility to acquire “well-occupied grocery-anchored neighborhood shopping centers having a mix of national, credit worthy retailers selling necessity-based goods and services in strong markets throughout the US.”
“We believe that the broad base of support by top tier financial institutions as well as the flexible structure and competitive terms of the credit facility demonstrate the strong partnerships the company has built within the capital markets community,” says chief financial officer Devin Murphy.
The REIT has already made some acquisitions. In March 2014, for example, it bought Bethany Village, an 81,674-square-foot shopping center anchored by a Publix in Alpharetta, GA. And just recently it made its second acquisition—Staunton Plaza, an 80,265-square-foot shopping center, also in Staunton, and anchored by a Martin’s.
The credit facility has a four-year term, maturing in July 2018 with two six-month extension options, which would extend the maturity date to July 2019. KeyBank National Association is the administrative agent under the credit facility. JPMorgan Chase Bank, N.A. serves as syndication agent. Bank of America, N.A., Wells Fargo Bank, National Association, and MUFG Union Bank, N.A., serve as co-documentation agents. The lending syndicate also includes Royal Bank of Canada, Fifth Third Bank, and Capital One, N.A.