Urban Edge Properties 8-K

What Happened
Urban Edge Properties (through its Operating Partnership) entered into a Second Amended and Restated Credit Agreement and a separate Term Loan Agreement, effective January 22, 2026. The Restated Credit Agreement reduces the revolving credit facility from $800 million to $700 million, extends the maturity to June 28, 2030 (with two six‑month extension options), and adds a $125 million five‑year delayed‑draw term facility (maturing June 30, 2031). Separately, a $125 million seven‑year delayed‑draw term loan was established (maturing January 22, 2033). No amounts are currently drawn.

Key Details

• Revolver reduced from $800M to $700M; current facility fee 0.15% on the $700M commitment.
• Two delayed‑draw term facilities added: $125M (five‑year) and $125M (seven‑year); each has a 12‑month delayed draw window and accordion options (revolver unsecured capacity up to $1.025B; term loan capacity up to $250M).
• Interest options are SOFR‑based or base rate plus margin; current margins: 1.00% for SOFR revolving loans, 1.15% for SOFR term loans (five‑year), and 1.50% for the seven‑year SOFR loans. The seven‑year loan has prepayment premiums (2% until 1 year, 1% in year 2, none thereafter). ESG targets can adjust margins by up to ±0.04%.
• Financial covenants include a Total Outstanding Indebtedness / Capitalization Value cap of 60% (65% temporarily after a material acquisition), Combined EBITDA / Fixed Charges ≥1.50x, and other unencumbered/secured indebtedness tests. Obligations are senior unsecured of the Operating Partnership; the REIT (Company) will not guarantee the facility.

Why It Matters
This transaction updates Urban Edge’s liquidity and debt structure: the company extended the revolver maturity, lowered committed revolver capacity, and added two term funding options totaling $250M available via delayed draws. For investors, the changes affect available liquidity, borrowing costs (current low SOFR margins and a modest facility fee), and covenant tests that could limit future leverage or acquisitions if tested. Importantly, no amounts are outstanding now and the REIT itself is not a guarantor, so borrowers’ obligations rest with the Operating Partnership.