AGREE REALTY CORP 8-K

Summary

Agree Realty debt issuance. The company’s subsidiary completed a $400M offering of 5.650% senior unsecured notes due 10/15/2036, guaranteed by Agree Realty and certain subsidiaries.

Key Figures

• Principal amount: $400M; underwriters paid 97.847% of principal. Net proceeds were approximately $390.1M after the underwriting discount and estimated offering expenses.
• Interest: 5.650% annually, payable 4/15 and 10/15, beginning 4/15/2027. The notes rank equally with the issuer’s other senior unsecured debt and are effectively subordinated to secured debt and certain subsidiary and equity-method entity liabilities.
• Covenants include limits on additional indebtedness and a requirement to maintain a pool of unencumbered assets. Before 10/15/2036, redemption is generally at the greater of par or a make-whole price, plus accrued interest; from 7/15/2036, redemption is at par plus accrued interest.