Press Release

Armada Hoffler Properties Closes on New $300 Million Unsecured Credit Facility

Company Release - 10/30/2017 6:00 AM ET

VIRGINIA BEACH, Va., Oct. 30, 2017 (GLOBE NEWSWIRE) -- Armada Hoffler Properties, Inc. (NYSE:AHH) today announced that it closed on a new $300 million unsecured credit facility.

The credit agreement provides for a $150 million senior unsecured revolving credit facility and a $150 million senior unsecured term loan. The new facility replaces the Company’s existing $150 million unsecured revolving credit facility, which was scheduled to mature on February 20, 2019 and a $125 million term loan maturing February 20, 2020.  

The credit facility includes an accordion feature that allows the total commitments to be increased up to an additional $150 million, subject to certain conditions.

Amounts outstanding under the facility bear interest at LIBOR plus a margin between of 1.40% and 2.00% for the revolving credit facility and 1.35% and 1.95% for the term loan, depending on the Company’s leverage levels.  Certain covenants were amended to improve flexibility and align with current market terms.  Other structural enhancements include, but are not limited to the following:

  • A borrowing base availability test was replaced with a set of unencumbered financial covenants, which are tested on a quarterly basis; and
  • Revolver and term loan maturities were extended to 2021 and 2022, respectively. In addition, the revolver contains two, six-month extension options, subject to certain customary conditions.

“We are delighted with our new and expanded unsecured credit facility,” said Mike O’Hara, Chief Financial Officer.  “During 2017, we have focused on enhancing the flexibility of our balance sheet and improving our liquidity position, and we believe the expanded facility demonstrates the continued strength of our financial position, provides us with greater flexibility to fund future growth and improves our debt maturity schedule. We are pleased to have the continued opportunity to work with our existing top tier banks and with our ability to bring in several new lenders, having earned their confidence and support in both our business model and management team.”

The new facility closed on Thursday, October 26, 2017.  Merrill Lynch, Pierce, Fenner & Smith Incorporated served as joint lead arranger and sole bookrunner on the transaction.  Bank of America, N.A. serves as the administrative agent.  Regions Bank and PNC Bank, National Association each served as a joint lead arranger and syndication agent.  Citizens Bank, National Association, TD Bank, N.A. and Synovus Bank each participated in the credit facility.

About Armada Hoffler Properties, Inc.
Armada Hoffler Properties, Inc. (NYSE:AHH) is a vertically-integrated, self-managed real estate investment trust ("REIT") with nearly four decades of experience developing, building, acquiring and managing high-quality, institutional-grade office, retail and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. The Company also provides general construction and development services to third-party clients, in addition to developing and building properties to be placed in its stabilized portfolio. The Company has elected to be taxed as a REIT for U.S. federal income tax purposes.

Forward-Looking Statements
Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement.  For a description of factors that may cause the Company's actual results or performance to differ from its forward-looking statements, please review the information under the heading “Risk Factors” included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016, and other documents filed by the Company with the Securities and Exchange Commission.

Michael P. O’Hara
Armada Hoffler Properties, Inc.
Chief Financial Officer and Treasurer
Phone: (757) 366-6684

Source: Armada Hoffler Properties Inc.
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