Agree Realty prices $400 million of long-term unsecured debt

Agree Realty’s ($ADC) operating partnership priced $400 million of senior unsecured notes due in 2036. The notes carry a 5.650% coupon and were issued at 98.497% of face value, producing a 5.849% yield. Earlier interest-rate hedges reduce the company’s stated effective financing cost to approximately 5.36%.

The offering is expected to close on September 22, and proceeds are intended for general corporate purposes, including debt repayment, property acquisitions and development. Agree said liquidity exceeds $2 billion and that it has no significant debt maturities before 2028. The coupon, investor yield and hedged cost are different measures and should not be conflated. The announcement establishes financing terms, not a completed property purchase or a new earnings forecast.

Sources:

• Agree Realty — senior-note pricing and hedging details, company release reprint