Tanger Secures $550M to Fortify Finances and Fuel Retail Growth

GREENSBORO, NC – January 06, 2026 – Tanger® (NYSE: SKT), a leading operator of outlet and open-air shopping centers, has announced a significant financial maneuver, closing on $550 million in unsecured term loan facilities. The move, which increases the company's term loan capacity by $225 million, is a multi-pronged strategic play designed to strengthen its balance sheet, enhance liquidity, and position the retail real estate investment trust (REIT) for future growth in a dynamic market.

The transaction underscores a powerful vote of confidence from the financial community in Tanger's business model and the enduring appeal of physical retail, particularly within the outlet and lifestyle center niche. By extending debt maturities into the next decade and securing more favorable terms, Tanger is building a financial fortress while simultaneously stockpiling capital for strategic opportunities.

A Proactive Approach to Balance Sheet Strength

At the heart of the announcement is a sophisticated restructuring and expansion of Tanger's debt profile. The $550 million in new capacity is split between two key instruments: an amended $350 million loan now maturing in December 2030 and a new $200 million loan extending to January 2033. This immediately pushes out the company's debt runway, a critical advantage in an environment of fluctuating interest rates. For context, as of its last reported quarter, Tanger’s weighted average term to maturity for its debt was just over three years; these new loans significantly lengthen that average.

The pricing on these loans—SOFR plus 95 basis points for the 2030 loan and SOFR plus 125 basis points for the 2033 loan—is competitive. Notably, the company also successfully amended its existing revolving credit facilities to remove a 10-basis point SOFR credit adjustment spread, a technical but important detail that signals improved credit perception among its lenders and results in lower borrowing costs.

This financial bolstering comes at a time when Tanger is already operating from a position of strength. The company's most recent financial reports from late 2025 painted a picture of robust health, with portfolio-wide occupancy at a high of 97.4%, tenant sales productivity hitting all-time highs, and positive blended rent spreads for the 15th consecutive quarter. With a healthy net debt to Adjusted EBITDA ratio of 5.0x, Tanger was not in distress. Instead, this move represents a proactive strategy to optimize its capital structure, reduce future refinancing risk, and lock in long-term capital.

“We appreciate the continued strong support we have received from our lender group,” commented Michael Bilerman, Executive Vice President, Chief Financial Officer and Chief Investment Officer. “This amendment to our existing term loan and the addition of the 2033 Term Loan improves our liquidity, provides additional flexibility, and further strengthens Tanger’s balance sheet as part of our commitment to deliver long-term growth for stakeholders."

Lender Confidence Signals Healthy Outlook for Open-Air Retail

The successful syndication of these loans across a wide consortium of major banks—including Wells Fargo, BofA Securities, Truist, and U.S. Bank—is perhaps as significant as the financial terms themselves. In an era where headlines have often questioned the viability of brick-and-mortar retail, this strong backing from sophisticated lenders provides a powerful counter-narrative. It suggests that the financial industry sees a stable and profitable future in well-located, professionally managed open-air retail centers.

Lenders are backing Tanger’s proven performance. The company has demonstrated a resilient model that thrives on a combination of value-oriented shopping and an experiential atmosphere. The open-air format, which gained popularity in recent years, continues to attract both consumers and high-quality tenants. This is further supported by a national commercial real estate environment where limited new retail development has created a landlord-favorable market, allowing owners like Tanger to maintain high occupancy and command strong rents.

The REIT's operational metrics justify this confidence. With tenant sales per square foot at a record $475 and consistent growth in same-center net operating income, Tanger's portfolio is not just surviving but thriving. This performance makes the company a reliable borrower and validates its strategic focus on the outlet and lifestyle center segment, which appears well-insulated from some of the pressures facing traditional enclosed malls.

Fueling the Next Wave of Growth and Innovation

While shoring up its defenses, Tanger is also clearly preparing for its next offensive push. The structure of the financing includes $150 million in delayed draw features, allowing the company to access this capital over the next six to nine months. This provides immense flexibility, enabling Tanger to act decisively on strategic opportunities without carrying the cost of idle cash on its balance sheet.

The initial $75 million of new proceeds will be used to pay down existing credit lines and for working capital, but the larger pool of available capital points toward a continued focus on external growth. This financing follows a period of strategic acquisitions for Tanger, which recently added properties in key markets like Kansas City, Cleveland, and Little Rock to its portfolio. These acquisitions reflect a strategy to expand its footprint and diversify into adjacent open-air lifestyle centers, leveraging its operational platform to enhance value.

The enhanced liquidity could fuel further acquisitions, allow for significant reinvestment and redevelopment of existing properties, or fund the integration of new technologies and amenities to elevate the shopper experience. As consumer expectations evolve, having readily available capital to innovate—whether through new tenant mixes, food and beverage options, or entertainment features—is a crucial competitive advantage. This financial maneuver ensures that Tanger has the resources not just to maintain its properties, but to actively shape the future of its shopping destinations. This proactive capital management equips Tanger to not only navigate the evolving retail landscape but also to actively define its trajectory.