EastGroup Properties Enters New Agreement, Terminates Old

Ticker: EGP · Form: 8-K · Filed: Jun 13, 2024 · CIK: 49600

Eastgroup Properties Inc 8-K Filing Summary
FieldDetail
CompanyEastgroup Properties Inc (EGP)
Form Type8-K
Filed DateJun 13, 2024
Risk Levelmedium
Pages4
Reading Time5 min
Key Dollar Amounts$0.0001, $625 million
Sentimentneutral

Sentiment: neutral

Topics: material-agreement, financial-obligation, agreement-termination

Related Tickers: EGP

TL;DR

EGP just signed a new deal and ditched an old one, plus took on new debt. Watch this space.

AI Summary

On June 13, 2024, EastGroup Properties, Inc. entered into a material definitive agreement and simultaneously terminated another. The company also incurred a direct financial obligation. Specific details regarding the agreements, obligations, and their financial implications were not fully disclosed in this initial filing.

Why It Matters

This filing indicates significant changes in EastGroup Properties' contractual and financial obligations, which could impact its future operations and financial performance.

Risk Assessment

Risk Level: medium — The filing indicates the entry into a material definitive agreement and the creation of a direct financial obligation, suggesting potential changes in the company's financial structure and operational commitments.

Key Players & Entities

  • EASTGROUP PROPERTIES, INC. (company) — Registrant
  • 0000049600-24-000082 (filing_id) — Accession Number
  • June 13, 2024 (date) — Date of Report

FAQ

What is the nature of the material definitive agreement entered into by EastGroup Properties, Inc. on June 13, 2024?

The filing states that EastGroup Properties, Inc. entered into a material definitive agreement on June 13, 2024, but the specific details of this agreement are not provided in this initial report.

Which material definitive agreement was terminated by EastGroup Properties, Inc. on June 13, 2024?

The filing indicates the termination of a material definitive agreement by EastGroup Properties, Inc. on June 13, 2024, but does not specify which agreement was terminated.

What is the direct financial obligation incurred by EastGroup Properties, Inc.?

EastGroup Properties, Inc. created a direct financial obligation on June 13, 2024, as reported in the 8-K filing, but the specifics of this obligation are not detailed.

What is the company's IRS number?

The IRS number for EastGroup Properties, Inc. is 13-2711135.

In which state was EastGroup Properties, Inc. incorporated?

EastGroup Properties, Inc. was incorporated in Maryland (MD).

Filing Stats: 1,260 words · 5 min read · ~4 pages · Grade level 10.4 · Accepted 2024-06-13 17:23:10

Key Financial Figures

  • $0.0001 — ange on which registered Common stock, $0.0001 par value per share EGP New York Stock
  • $625 million — nt providing for the Company's existing $625 million unsecured revolving credit facility (th

Filing Documents

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On June 13, 2024 , EastGroup Properties, Inc. (the "Company") and its subsidiary, EastGroup Properties, L.P., entered into the Sixth Amended and Restated Credit Agreement (the "Credit Agreement") with the lender parties thereto, and PNC Bank, National Association, as Agent, Regions Bank, as Syndication Agent, Bank of America, N.A., U.S. Bank National Association, TD Bank, N.A., and JPMorgan Chase Bank, N.A., as Co-Documentation Agents, PNC Capital Markets LLC, as Sustainability Agent, PNC Capital Markets LLC, Regions Capital Markets, and BofA Securities, Inc., as Joint Lead Arrangers, and PNC Capital Markets LLC and Regions Capital Markets, as Joint Bookrunners. The Credit Agreement replaced the agreement providing for the Company's existing $625 million unsecured revolving credit facility (the "Existing Credit Agreement"), dated as of June 29, 2021, as amended January 10, 2023. The Credit Agreement allows for borrowings in the aggregate principal amount of up to $625 million. Borrowings will bear interest, at the Company's option, at the Base Rate Option (as defined in the Credit Agreement) plus a margin of 0.00% to 0.40% or at the secured overnight financing rate ("SOFR") plus a margin of 0.725% to 1.40%, in each case depending on the Company's credit ratings. The initial interest rate is SOFR plus 0.765% which is the equivalent of 6.10% at June 13, 2024 . The facility fee pursuant to the Credit Agreement ranges between 0.125% to 0.30% per annum and is currently set at 0.15%, also based upon the Company's credit ratings. The Credit Agreement includes a $625 million accordion feature and has an initial maturity date of July 31, 2028 with two six-month extensions at the Company's option. The Credit Agreement contains various customary covenants, including covenants that require the Company to maintain (i) its ratio of total liabilities to total asset value at 60% or less, subject to certain exceptions, (ii) i

02 Termination of a Material Definitive Agreement

Item 1.02 Termination of a Material Definitive Agreement. On June 13, 2024 , in connection with the entrance into the Credit Agreement, the Company repaid all of the outstanding obligations under and terminated the Existing Credit Agreement. 2 of 4 Pages Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information provided in Item 1.01 on this Form 8-K is incorporated herein by reference.

01 Other Events

Item 8.01 Other Events. On June 13, 2024 , the Company entered into the Fifth Amendment To Letter Agreement for its unsecured working cash credit facility with PNC Bank, National Association (the "Working Cash Line") extending the expiration date to July 31, 2028 with two six-month extensions. The Working Cash Line was extended under substantially the same terms and conditions as the Credit Agreement.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description 10.1 Sixth Amended and Restated Credit Agreement, dated June 13, 2024 , among EastGroup Properties, L.P.; EastGroup Properties, Inc.; PNC Bank, National Association, as Agent; Regions Bank, as Syndication Agent; Bank of America, N.A., U.S. Bank National Association, TD Bank, N.A., and JPMorgan Chase Bank, N.A., as Co-Documentation Agents; PNC Capital Markets LLC, as Sustainability Agent; PNC Capital Markets LLC, Regions Capital Markets, and BOFA Securities, Inc., as Joint Lead Arrangers; PNC Capital Markets LLC and Regions Capital Markets, as Joint Bookrunners; and the Lenders party thereto. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). 3 of 4 Pages

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: June 13, 2024 EASTGROUP PROPERTIES, INC. By: /s/ BRENT W. WOOD Brent W. Wood Executive Vice President, Chief Financial Officer and Treasurer 4 of 4 Pages

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