Phillips Edison Raises $350M in Senior Notes

Proceeds will support debt repayment, property acquisitions, and broader corporate growth initiatives.

June 18, 2025

Phillips Edison Launches $350 Million Senior Notes Offering to Fund Strategic Growth

Phillips Edison & Company has locked in $350 million in fresh capital through a public offering of senior notes—giving the company more room to maneuver as it sharpens its focus on financial flexibility and growth. The offering, completed on June 17, 2025, was executed by its operating partnership, Phillips Edison Grocery Center Operating Partnership I, L.P., and signals a clear move to support upcoming initiatives across the business.

The notes are priced with a 5.250% coupon and mature on August 15, 2032. They come with a full guarantee from the parent company and, under certain conditions, from its subsidiaries. The structure ensures broad coverage across the company’s capital base. Net proceeds after underwriting and fees are estimated at roughly $346.2 million.

Use of Proceeds

Here’s where those funds are going. The company plans to use them to:

• Pay down its revolving credit line


• Refinance existing term loans and other debt


• Acquire new grocery-anchored retail properties


• Redevelop and maintain existing assets


• Support general working capital needs

Until those funds are deployed, they’ll be held in short-term investments.

Structure and Terms

The senior notes are unsecured but rank on par with the company’s other senior debts. They sit below any secured or mortgage-backed obligations and below debts held by subsidiaries not backing the guarantee. Interest payments will land twice a year, starting February 15, 2026.

Redemption terms give the company flexibility to call the notes early—either at par or with a make-whole premium, depending on timing. Protections are in place through a set of covenants and default triggers that outline the company’s obligations and thresholds. These include:

• Timely payments of principal and interest


• Compliance with agreements tied to the notes and indenture


• Debt coverage limits above a certain threshold


• Subsidiary guarantee conditions


• Bankruptcy or insolvency-related events

The company entered the underwriting agreement on June 12, tapping a group led by J.P. Morgan, Fifth Third, Mizuho, Morgan Stanley, and U.S. Bancorp. Counsel from Ballard Spahr and Latham & Watkins provided legal opinions backing the offering.

Phillips Edison is using this capital raise to support a long list of operational and investment priorities. Whether it's reducing interest expense, adding new retail centers, or upgrading current assets, this transaction builds in the financial flexibility to move quickly when opportunities arise.