Company: EGP
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0000049600-25-000109
Chunk: 126

Company: EASTGROUP PROPERTIES INC
Filing Date: 2025-10-23
Form: 10-Q
Item: Part I, Item 8
Chunk 126
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, now has a three-year maturity with two one-year extension options, at the Company's election.

In March 2025, EastGroup repaid a $50,000,000 senior unsecured term loan at maturity with an effectively fixed interest rate of 1.58%.

In August 2025, EastGroup repaid senior unsecured notes at maturity.  The notes had a principal balance of $20,000,000 and a fixed interest rate of 3.80%.

The Company has a $625,000,000 unsecured bank credit facility with a group of 10 banks, which has a maturity date of July 31, 2028. The credit facility contains options for two six-month extensions (at the Company's election) and an additional $625,000,000 accordion (with agreement by all parties). The interest rate on each tranche is reset on a monthly basis and as of September 30, 2025, was SOFR plus 73.5 basis points with an annual facility fee of 14 basis points.  As of September 30, 2025, the Company had $45,000,000 of variable rate borrowings on this unsecured bank credit facility and an interest rate of 4.998%.  The Company has a $2,588,000 standby letter of credit pledged on this facility, which reduces borrowing capacity under the credit facility.

The Company also has a $50,000,000 unsecured bank credit facility with a maturity date of July 31, 2028, or such later date as designated by the bank; the Company also has two six-month extensions available if the extension options in the $625,000,000 facility are exercised. The interest rate is reset on a daily basis and as of September 30, 2025, was SOFR plus 77.5 basis points with an annual facility fee of 15 basis points.  As of September 30, 2025, the interest rate was 5.035% with no outstanding balance.

For both facilities, the margin and facility fee are subject to changes in the Company's credit ratings.  In May 2025, Moody’s Ratings affirmed EastGroup’s issuer rating of Baa2 and changed its rating outlook from stable to positive.  Given the strength of the Company’s key credit metrics, initial pricing for the credit facilities is based on the BBB+/Baa1 credit ratings level.  This favorable pricing level will be retained provided that the Company’s consolidated leverage ratio