Armada Hoffler Announces Closing of Inaugural Private Debt Placement
Armada Hoffler (NYSE: AHH) has successfully closed its inaugural private placement of $115 million in senior unsecured notes. The notes were structured in three tranches with maturities ranging from 3 to 7 years, featuring a blended interest rate of 5.86% and a weighted average maturity of 5.3 years.
The company plans to use the proceeds for general corporate purposes and debt refinancing. This strategic move follows Morningstar DBRS's reaffirmation of AHH's BBB credit rating with a stable outlook in January 2025, highlighting the company's improved leverage profile and diversified real estate portfolio.
Armada Hoffler (NYSE: AHH) ha completato con successo la sua prima collocazione privata di 115 milioni di dollari in obbligazioni senior non garantite. Le obbligazioni sono state strutturate in tre tranche con scadenze da 3 a 7 anni, con un tasso d'interesse medio ponderato del 5,86% e una durata media ponderata di 5,3 anni.
L'azienda intende utilizzare i proventi per scopi aziendali generali e per rifinanziare il debito. Questa mossa strategica segue la conferma del rating creditizio BBB con outlook stabile da parte di Morningstar DBRS a gennaio 2025, che evidenzia il miglioramento del profilo di leva finanziaria e il portafoglio immobiliare diversificato della societ脿.
Armada Hoffler (NYSE: AHH) ha cerrado con 茅xito su colocaci贸n privada inaugural de 115 millones de d贸lares en bonos senior no garantizados. Los bonos se estructuraron en tres tramos con vencimientos de entre 3 y 7 a帽os, con una tasa de inter茅s combinada del 5,86% y un vencimiento promedio ponderado de 5,3 a帽os.
La compa帽铆a planea utilizar los fondos para fines corporativos generales y refinanciamiento de deuda. Esta estrategia sigue a la reafirmaci贸n de la calificaci贸n crediticia BBB de AHH por Morningstar DBRS con perspectiva estable en enero de 2025, destacando el perfil de apalancamiento mejorado y la cartera inmobiliaria diversificada de la empresa.
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Armada Hoffler (NYSE : AHH) a cl么tur茅 avec succ猫s son premier placement priv茅 de 115 millions de dollars en obligations senior non garanties. Les obligations ont 茅t茅 structur茅es en trois tranches avec des maturit茅s allant de 3 脿 7 ans, pr茅sentant un taux d'int茅r锚t moyen pond茅r茅 de 5,86% et une dur茅e moyenne pond茅r茅e de 5,3 ans.
L'entreprise pr茅voit d'utiliser les fonds pour des besoins g茅n茅raux de l'entreprise et le refinancement de la dette. Cette d茅marche strat茅gique fait suite 脿 la confirmation par Morningstar DBRS de la notation de cr茅dit BBB d'AHH avec une perspective stable en janvier 2025, soulignant le profil d'endettement am茅lior茅 et le portefeuille immobilier diversifi茅 de la soci茅t茅.
Armada Hoffler (NYSE: AHH) hat erfolgreich seine erste Privatplatzierung von 115 Millionen US-Dollar in ungesicherten Senior-Anleihen abgeschlossen. Die Anleihen wurden in drei Tranchen mit Laufzeiten von 3 bis 7 Jahren strukturiert und weisen einen gemischten Zinssatz von 5,86% sowie eine gewichtete durchschnittliche Laufzeit von 5,3 Jahren auf.
Das Unternehmen plant, die Erl枚se f眉r allgemeine Unternehmenszwecke und zur Umschuldung zu verwenden. Dieser strategische Schritt folgt auf die Best盲tigung des BBB-Kreditratings von AHH durch Morningstar DBRS mit stabilem Ausblick im Januar 2025 und unterstreicht das verbesserte Verschuldungsprofil und das diversifizierte Immobilienportfolio des Unternehmens.
- Successful placement of $115 million in senior unsecured notes
- BBB credit rating reaffirmed by Morningstar DBRS with stable outlook
- Enhanced balance sheet flexibility through diversified capital sources
- Fixed interest rate of 5.86% provides predictable long-term financing costs
- Additional debt burden with new $115 million notes
- Interest expenses will increase due to the new debt obligations
VIRGINIA BEACH, Va., July 22, 2025 (GLOBE NEWSWIRE) -- Armada Hoffler (NYSE: AHH) (鈥淎rmada Hoffler鈥� or the 鈥淐ompany鈥�) announced the closing its inaugural private placement of
Proceeds from the offering will be used for general corporate purposes and to refinance existing debt.
鈥淭his offering provides long-term capital at a fixed rate and enhances our balance sheet flexibility,鈥� said Matthew Barnes-Smith, Chief Financial Officer of Armada Hoffler. 鈥淲e view this as a constructive step in our ongoing efforts to diversify capital sources and support our long-term strategy.鈥�
In January 2025, Morningstar DBRS reaffirmed Armada Hoffler鈥檚 BBB credit rating and revised its outlook to stable, citing the Company鈥檚 improved leverage profile and diversified real estate portfolio.
The offer and sale of the notes and the related guarantees have not been, and will not be, registered under the Securities Act of 1933, as amended (the 鈥淪ecurities Act鈥�), or the securities laws of any state or other jurisdiction and the notes may not be offered or sold in the United States or any other jurisdiction absent registration or an exemption from the registration requirements of the Securities Act and the applicable securities laws of any state or other jurisdiction. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities.
About Armada Hoffler
Armada Hoffler (NYSE: AHH) is a vertically integrated, self-managed real estate investment trust (鈥淩EIT鈥�) with over four decades of experience developing, building, acquiring, and managing high-quality office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. We also provide general construction and development services to third-party clients, in addition to developing and building properties to be placed in our stabilized portfolio. Founded in 1979 by Daniel A. Hoffler, Armada Hoffler has elected to be taxed as a REIT for U.S. federal income tax purposes. For more information visit ArmadaHoffler.com.
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. These statements relate to the Company鈥檚 the anticipated use of the net proceeds from the private placement of the notes. No assurance can be given that the net proceeds from the private placement will be used as indicated. The application of the net proceeds is subject to numerous conditions, many of which are beyond the control of the Company, including, market conditions, general economic conditions and other factors, including those set forth under the heading 鈥淩isk Factors鈥� in the Company鈥檚 Annual Report on Form 10-K for the year ended December 31, 2024, and those set forth in other documents filed by the Company from time to time with the Securities and Exchange Commission.
Contact:
Chelsea Forrest
Armada Hoffler
Vice President of Corporate Communications and Investor Relations
Email:
Phone: (757) 612-4248
FAQ
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