Slate Grocery REIT Completes $500 Million Debt Refinancing

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Business Wire

Mon, Oct 21, 2024, 7:12 PM 4 min read

TORONTO, October 21, 2024--(BUSINESS WIRE)--Slate Grocery REIT (TSX: SGR.U) (TSX: SGR.UN) (the "REIT"), an owner and operator of U.S. grocery-anchored real estate, announced today that it has entered into a new credit facility agreement (the "Facility") on October 21, 2024 for an aggregate principal amount of up to US$500 million, comprising a US$275 million revolving credit facility and a US$225 million term loan facility, maturing in January 2028. The Facility was completed with a syndicate of both existing and new institutional lenders at interest rate spreads similar to the maturing debt facility.

"In today’s financing environment, our ability to refinance half a billion dollars of debt at such favorable economic terms reflects the strength and quality of our underlying real estate portfolio and the confidence our lenders have in the long-term growth and outlook of our business," said Joe Pleckaitis, Chief Financial Officer of the REIT. "We strategically executed this refinancing to ensure we have ample liquidity available in order to maintain the strength of our operations over the coming years."

The REIT is also in advanced stages with lenders to refinance another US$138 million of upcoming debt maturities, which are expected to be completed during the fourth quarter. Subsequent to these refinancings, the REIT’s forecasted weighted average interest rate across its portfolio, coupled with the REIT’s interest rate swap contracts in-place, will be 4.8%, continuing to provide positive leverage and stability for the REIT.

About Slate Grocery REIT (TSX: SGR.U / SGR.UN)

Slate Grocery REIT is an owner and operator of U.S. grocery-anchored real estate. The REIT owns and operates approximately U.S. $2.4 billion of critical real estate infrastructure across major U.S. metro markets that communities rely upon for their daily needs. The REIT’s resilient grocery-anchored portfolio and strong credit tenants provide unitholders with durable cash flows and the potential for capital appreciation over the longer term. Visit slategroceryreit.com to learn more about the REIT.

About Slate Asset Management

Slate Asset Management is a global alternative investment platform targeting real assets. We focus on fundamentals with the objective of creating long-term value for our investors and partners. Slate’s platform has a range of real estate and infrastructure investment strategies, including opportunistic, value add, core plus and debt investments. We are supported by exceptional people and flexible capital, which enable us to originate and execute on a wide range of compelling investment opportunities. Visit slateam.com to learn more.

Forward-Looking Statements

Certain information herein constitutes "forward-looking information" as defined under Canadian securities laws which reflect management’s expectations regarding objectives, plans, goals, strategies, future growth, results of operations, performance, business prospects and opportunities of the REIT. The words "plans," "expects," "does not expect," "scheduled," "estimates," "intends," "anticipates," "does not anticipate," "projects," "believes," or variations of such words and phrases or statements to the effect that certain actions, events or results "may," "will," "could," "would," "might," "occur," "be achieved," or "continue" and similar expressions identify forward-looking statements. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations.

Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by management as of the date hereof, are inherently subject to significant business, economic and competitive uncertainties and contingencies. When relying on forward-looking statements to make decisions, the REIT cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved. A number of factors could cause actual results to differ, possibly materially, from the results discussed in the forward-looking statements. Additional information about risks and uncertainties is contained in the filings of the REIT with securities regulators.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20241021150395/en/

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