Company: FRT-PC
Filing Date: 2025-11-20
Form Type: 8-K
Source: 0000034903-25-000067
Chunk: 0

Company: FEDERAL REALTY INVESTMENT TRUST
Filing Date: 2025-11-20
Form: 8-K
Item: Item 1.01
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Item 1.01.      Entry into Material Definitive Agreement.  

Term Loan Agreement

On November 17, 2025, Federal Realty OP LP (the “ Partnership”), entered into a Term Loan Agreement (the “ Agreement”), by and among the Partnership, as Borrower, the financial institutions party thereto and their permitted assignees, as Lenders, Truist Bank, as Administrative Agent, and the other parties thereto.

Under the terms of the Agreement, the Partnership has the capacity to borrow up to $250 million in the form of one or more unsecured term loans. Under an accordion feature, the Partnership has the right to request additional loans, subject to an aggregate maximum of $500 million. All loans under the Agreement will have a stated maturity date of January 31, 2031. As of the date of this report, the Partnership does not have any outstanding borrowings under the Agreement.

Generally, loans under the Agreement bear interest, at the option of the Partnership, at a rate based on (i) SOFR, or (ii) a Base Rate (each as defined therein), in each case plus an applicable margin that depends on the Partnership’s credit rating. The applicable margins for SOFR loans under the Agreement range from 75 basis points to 160 basis points, and the applicable margins for Base Rate loans under the Agreement range from 0 basis points to 60 basis points. As of the date of this report, the applicable margin for SOFR loans would be 85 basis points.

The Agreement contains a number of restrictions on the Partnership’s business, affirmative covenants and events of default, which are similar in all material respects to the Partnership’s revolving credit facility and other unsecured term loans, including, but not limited to, (i) restrictions on the Partnership’s ability to incur indebtedness, make investments, incur liens, engage in certain affiliate transactions and engage in major transactions such as mergers; (ii) various financial maintenance covenants, including a minimum fixed charge coverage ratio, a maximum secured indebtedness ratio, and a minimum unencumbered leverage ratio; and (iii) a cross default to the Partnership’s other material indebtedness and limitations on changes of control. The Partnership’s failure to comply with these covenants, or the occurrence of an event of default, could result in acceleration of the Partnership’s debt and other financial obligations under the Agreement.

The foregoing does not constitute a complete summary of the terms and conditions of the Agreement, which is attached