Agree Realty Announces Pricing of $400 Million of 5.600% Senior Unsecured Notes Due 2035

Key Takeaways:

• Agree Realty priced $400 million of 5.600% senior unsecured notes due 2035.
• The offering increases liquidity to approximately $2.6 billion.
• Inclusive of prior hedging, the all-in interest rate is approximately 5.35%.
• Proceeds will be used for general corporate purposes, including reducing debt and funding acquisitions.
• The notes extend the company’s weighted-average debt maturity, with no material maturities until 2028.

Agree Realty Announces Significant Debt Offering

Agree Realty Corporation has announced the pricing of a substantial debt offering, aimed at enhancing its financial position and propelling future growth initiatives.

Details of the Offering

The company has priced a public offering of $400 million of its 5.600% senior unsecured notes due 2035. The notes were offered at 99.297% of the principal amount, resulting in an effective yield to maturity of 5.692%. When factoring in prior hedging activity, the all-in interest rate of the notes stands at approximately 5.35%.

Strategic Use of Proceeds

Agree Realty plans to utilize the net proceeds from this offering for general corporate purposes. This includes reducing outstanding indebtedness and funding property acquisitions and development activities, aligning with the company’s strategic objectives for continued growth.

Enhancing Financial Flexibility

“This offering further increases our liquidity position to a record of approximately $2.6 billion and positions our company to execute on our growth strategy in 2025 and beyond,” said Peter Coughenour, Chief Financial Officer. “The notes extend our weighted-average debt maturity and strengthen our fortress balance sheet, which has no material debt maturities until 2028.”

Closing and Management Details

The offering is expected to close on May 23, 2025, subject to the satisfaction of customary closing conditions. The financing is managed by a consortium of leading financial institutions, with J.P. Morgan, Mizuho, PNC Capital Markets LLC, Wells Fargo Securities, BofA Securities, and Citigroup acting as joint book-running managers.

Agree Realty Corporation’s strategic financial moves demonstrate a commitment to strengthening its position in the real estate market while preparing for sustained growth in the years ahead.