Phillips Edison & Company Announces Execution Of Interest Rate Swap Agreement Totaling $150M
Portfolio Pulse from Benzinga Newsdesk
Phillips Edison & Company, Inc. (NASDAQ:PECO) has executed an interest rate swap agreement with a notional amount of $150 million. The swap, effective from September 25, 2024, to December 31, 2025, fixes the daily Secured Overnight Financing Rate at approximately 3.45%. This financial instrument is intended to hedge against interest rate risk from the company's variable rate term loans and is not for trading purposes.
January 16, 2024 | 9:23 pm
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Phillips Edison & Company has secured a fixed interest rate through a swap, mitigating the risk of rising interest rates on its variable rate loans.
The execution of the interest rate swap agreement by PECO is a proactive measure to manage interest rate risk, which is generally viewed positively by investors as it provides more predictable future financial costs. This could lead to a short-term positive impact on PECO's stock price as it reflects prudent financial management.
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