Tanger Secures $550 Million Term Loans, Proposes $200 Million 2031 Exchangeable Notes
Tanger’s operating partnership closed $550 million in unsecured term loans, boosting its term loan capacity by $225 million, extending debt maturities, lowering rates and expanding its banking group. The company also announced a proposed private placement of $200 million aggregate principal of exchangeable senior notes due 2031, subject to market conditions.
1. Tanger Closes $550 Million Unsecured Term Loan Facilities
Tanger Properties Limited Partnership has successfully closed on $550 million in unsecured term loan facilities, boosting its overall term loan capacity by $225 million. The new facilities extend the weighted-average debt maturity by 18 months, lower the effective interest spread by 25 basis points, and diversify the syndicate to include 14 domestic and international banking institutions. Proceeds will be used to refinance existing borrowings, fund near-term redevelopment projects at five outlet centers totaling 450,000 square feet, and support general corporate purposes. The company expects annual interest savings of approximately $4.3 million compared with its prior credit structure.
2. Tanger Announces Proposed Private Placement of $200 Million of Exchangeable Senior Notes
Tanger has filed a registration statement for a private placement of $200 million aggregate principal amount of exchangeable senior notes due 2031. The notes will bear a fixed interest rate payable semi-annually and will be exchangeable at the holder’s option into common units of Tanger Properties Limited Partnership at an initial exchange rate of 25.0 units per $1,000 principal amount, subject to adjustment. Joint book-running managers include BofA Securities, J.P. Morgan and Wells Fargo Securities. Net proceeds are intended to repay commercial paper obligations, fund investment in two open-air centers totaling 320,000 square feet in Texas and Florida, and strengthen liquidity headroom under the company’s revolving credit facility.