Armada Hoffler announced the successful closing of its inaugural private placement of $115 million in senior unsecured notes on July 22, 2025. The notes were issued in three tranches with maturities of 3, 5, and 7 years, bearing a blended interest rate of 5.86% and a weighted average maturity of 5.3 years.
This offering provides long-term capital at a fixed rate, significantly enhancing the company's balance sheet flexibility and reducing exposure to interest rate volatility. Proceeds from the placement will be used for general corporate purposes and to refinance existing debt.
The successful placement is a constructive step in Armada Hoffler's ongoing efforts to diversify its capital sources and support its long-term strategy. This follows Morningstar DBRS's reaffirmation of the company's BBB credit rating and upgrade of its outlook to stable in January 2025.
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