CINCINNATI - Phillips Edison & Company, Inc. (NASDAQ:PECO), a leading owner and operator of grocery-anchored shopping centers, has announced the pricing of a $350 million public offering of senior unsecured notes. The notes, with a 5.750% interest rate, are due in 2034 and were priced at 98.576% of their principal amount. They are expected to mature on July 15, 2034, with the offering anticipated to settle on May 13, 2024, subject to customary closing conditions.
The company's operating partnership, Phillips Edison Grocery Center Operating Partnership I, L.P., will fully and unconditionally guarantee the notes. The proceeds from the offering are intended for general corporate purposes. This includes repaying borrowings under its revolving credit facility, funding property acquisitions, and other corporate needs.
A consortium of financial institutions, including Wells Fargo Securities, BofA Securities, and J.P. Morgan, served as joint book-running managers for the offering. The offering was made under an effective shelf registration statement previously filed with the Securities and Exchange Commission (SEC).
Phillips Edison & Company manages a portfolio of 304 shopping centers, including 284 wholly-owned centers across 31 states, totaling 32.4 million square feet. The company focuses on providing omni-channel, grocery-anchored shopping experiences and improving communities through its retail properties.
The offering's details are available on the SEC's website, and the final prospectus supplement and accompanying prospectus may be obtained from the financial institutions involved in the offering.
InvestingPro Insights
As Phillips Edison & Company, Inc. (NASDAQ:PECO) embarks on its public offering of senior unsecured notes, investors may find it useful to consider key financial metrics and InvestingPro Tips to gain a deeper understanding of the company's current market position.
With a market capitalization of approximately $4.51 billion, PECO's valuation reflects its significant presence in the grocery-anchored shopping center sector. The company's P/E ratio stands at a high 68.35, suggesting that investors are willing to pay a premium for its earnings relative to the market average. This could be attributed to the company's consistent performance, as it has been profitable over the last twelve months.
Investors should note that PECO's dividend yield is currently at 3.5%, and it has a track record of raising its dividend for four consecutive years. This may appeal to income-focused investors looking for steady dividend growth in their portfolio. Additionally, the company's liquid assets exceed its short-term obligations, indicating a solid financial footing that supports its operational strategies and potential growth initiatives.
While PECO is trading at a high earnings multiple, analysts predict the company will maintain profitability this year. This InvestingPro Tip aligns with the company's strategy to improve communities through its retail properties and could potentially reassure investors of its future prospects.
For those interested in a more comprehensive analysis, there are more InvestingPro Tips available for PECO at https://www.investing.com/pro/PECO. Investors can also take advantage of an additional 10% off a yearly or biyearly Pro and Pro+ subscription with the coupon code PRONEWS24. There are a total of 6 additional InvestingPro Tips listed, which could provide further insights into PECO's financial health and market performance.
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