PNC is Joint Lead Arranger in REIT Deal

Commits $150 Million to Billion-Dollar Transaction

PNC management has known the principals of the Phillips Edison Limited Partnership since they founded their business in 1991. Capping the lengthy relationship, PNC recently served as a Joint Lead Arranger and committed $150 million to enable Phillips Edison Grocery Center REIT I, Inc. to acquire real estate assets and the third party asset management business of Phillips Edison Limited Partnership. The stock and cash transaction involving 13 banks is valued at approximately $1 billion.

The resulting enterprise owns a portfolio of 234 shopping centers in 32 states and is expected to have a total enterprise value of approximately $4 billion.

Management of Phillips Edison has built its business by focusing on grocery-anchored shopping centers, which have been resilient to competition from online sales as well as economic ups and downs. In addition to maintaining the grocery focus, the deal is designed to improve earnings, strengthen the company’s balance sheet, increase its potential for growth and improve geographic and tenant diversity, as well as other benefits.

Close relationships at a senior level along with the substantial history contributed to the client’s selection of PNC as a Joint Lead Arranger for the deal. PNC also provides treasury management, capital markets and other services to the company.

Due to the complexity of the transaction, the client was working within a compressed timeframe. The PNC team worked quickly and efficiently to deliver for the client.


Date:
September 2017
Financing Amount: $150 million
Financing Type: Syndicated REIT deal
Number of Properties: 234
Number of States: 32
Gross Leasable Area: 25.5 million square feet

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