First Industrial Realty Trust Closes $850 Million Unsecured Revolving Credit Facility and $200 Million Unsecured Term Loan
First Industrial Realty Trust (NYSE: FR) has secured significant financing through two major transactions. The company closed an $850 million senior unsecured revolving credit facility, which represents a $100 million increase in capacity from its previous facility. This new facility matures on March 16, 2029, with two six-month extension options, and carries an initial interest rate of SOFR plus 77.5 basis points.
Additionally, FR refinanced a $200 million unsecured term loan maturing on March 17, 2028, with two one-year extension options. The term loan's initial interest rate is SOFR plus 85 basis points plus a 10-basis-point SOFR adjustment. Both facilities benefit from favorable BBB+/Baa1/BBB+ credit ratings level pricing, despite the company's current BBB/Baa2/BBB ratings, contingent on maintaining a consolidated leverage ratio below 35.0%.
First Industrial Realty Trust (NYSE: FR) ha ottenuto un finanziamento significativo attraverso due importanti operazioni. L'azienda ha concluso un prestito revolving senior non garantito di 850 milioni di dollari, che rappresenta un aumento della capacità di 100 milioni di dollari rispetto alla sua precedente struttura. Questo nuovo prestito scade il 16 marzo 2029, con due opzioni di estensione di sei mesi, e prevede un tasso d'interesse iniziale di SOFR più 77,5 punti base.
Inoltre, FR ha rifinanziato un prestito a termine non garantito di 200 milioni di dollari in scadenza il 17 marzo 2028, con due opzioni di estensione di un anno. Il tasso d'interesse iniziale del prestito a termine è SOFR più 85 punti base più un aggiustamento di 10 punti base di SOFR. Entrambe le strutture beneficiano di un pricing favorevole a livello di rating BBB+/Baa1/BBB+, nonostante i rating attuali dell'azienda siano BBB/Baa2/BBB, a condizione di mantenere un rapporto di leva consolidato al di sotto del 35,0%.
First Industrial Realty Trust (NYSE: FR) ha asegurado un financiamiento significativo a través de dos transacciones importantes. La empresa cerró un crédito revolving senior no garantizado de 850 millones de dólares, que representa un aumento de 100 millones de dólares en la capacidad de su instalación anterior. Esta nueva instalación vencerá el 16 de marzo de 2029, con dos opciones de extensión de seis meses, y tiene una tasa de interés inicial de SOFR más 77,5 puntos básicos.
Además, FR refinanció un préstamo a plazo no garantizado de 200 millones de dólares que vence el 17 de marzo de 2028, con dos opciones de extensión de un año. La tasa de interés inicial del préstamo a plazo es SOFR más 85 puntos básicos más un ajuste de 10 puntos básicos de SOFR. Ambas instalaciones se benefician de un pricing favorable a nivel de calificación BBB+/Baa1/BBB+, a pesar de que las calificaciones actuales de la empresa son BBB/Baa2/BBB, condicionado a mantener una relación de apalancamiento consolidado por debajo del 35,0%.
퍼스트 인더스트리얼 리얼티 트러스트 (NYSE: FR)는 두 가지 주요 거래를 통해 상당한 자금을 확보했습니다. 회사는 8억 5천만 달러의 무담보 선순위 회전 신용 시설을 마감했으며, 이는 이전 시설보다 1억 달러 증가한 용량을 나타냅니다. 이 새로운 시설은 2029년 3월 16일 만료되며, 두 개의 6개월 연장 옵션이 있으며, 초기 이자율은 SOFR에 77.5 베이시스 포인트가 추가됩니다.
또한, FR은 2028년 3월 17일 만료되는 2억 달러의 무담보 정기 대출을 재융자했으며, 두 개의 1년 연장 옵션이 있습니다. 정기 대출의 초기 이자율은 SOFR에 85 베이시스 포인트와 10 베이시스 포인트의 SOFR 조정이 추가됩니다. 두 시설 모두 BBB+/Baa1/BBB+ 신용 등급 수준의 유리한 가격 혜택을 누리고 있으며, 회사의 현재 BBB/Baa2/BBB 등급에도 불구하고, 통합 레버리지 비율을 35.0% 이하로 유지하는 조건입니다.
First Industrial Realty Trust (NYSE: FR) a sécurisé un financement significatif à travers deux transactions majeures. La société a clôturé une facilité de crédit renouvelable senior non garantie de 850 millions de dollars, ce qui représente une augmentation de 100 millions de dollars par rapport à sa précédente facilité. Cette nouvelle facilité arrive à maturité le 16 mars 2029, avec deux options d'extension de six mois, et a un taux d'intérêt initial de SOFR plus 77,5 points de base.
De plus, FR a refinancé un prêt à terme non garanti de 200 millions de dollars arrivant à échéance le 17 mars 2028, avec deux options d'extension d'un an. Le taux d'intérêt initial du prêt à terme est SOFR plus 85 points de base plus un ajustement de 10 points de base de SOFR. Les deux structures bénéficient d'un niveau de tarification favorable avec des notations de crédit BBB+/Baa1/BBB+, malgré les notations actuelles de l'entreprise de BBB/Baa2/BBB, sous réserve de maintenir un ratio d'endettement consolidé en dessous de 35,0%.
First Industrial Realty Trust (NYSE: FR) hat sich durch zwei bedeutende Transaktionen eine erhebliche Finanzierung gesichert. Das Unternehmen schloss eine unbesicherte revolvierende Kreditfazilität über 850 Millionen Dollar, die eine Kapazitätssteigerung von 100 Millionen Dollar im Vergleich zu seiner vorherigen Fazilität darstellt. Diese neue Fazilität läuft am 16. März 2029 aus, mit zwei sechsmonatigen Verlängerungsoptionen, und hat einen anfänglichen Zinssatz von SOFR plus 77,5 Basispunkte.
Darüber hinaus hat FR ein unbesichertes Terminkredit über 200 Millionen Dollar refinanziert, das am 17. März 2028 fällig wird, mit zwei einjährigen Verlängerungsoptionen. Der anfängliche Zinssatz des Terminkredits beträgt SOFR plus 85 Basispunkte plus eine SOFR-Anpassung von 10 Basispunkten. Beide Fazilitäten profitieren von einem günstigen Preisniveau mit BBB+/Baa1/BBB+ Kreditratings, trotz der aktuellen BBB/Baa2/BBB Ratings des Unternehmens, vorausgesetzt, dass das konsolidierte Verschuldungsverhältnis unter 35,0% bleibt.
- Secured $850M revolving credit facility with $100M increased capacity
- Favorable pricing at BBB+/Baa1/BBB+ level despite lower actual ratings
- Extended debt maturity profile to potentially 2030 with extension options
- Removed 10 basis point SOFR adjustment from revolving facility pricing
- Additional growth potential through $1B accordion feature
- Increased debt exposure through $1.05B total new facilities
- Subject to interest rate fluctuations with SOFR-based pricing
Insights
First Industrial Realty Trust's new debt arrangements represent a significant strengthening of its financial position and future growth capabilities. The company has secured $850 million in revolving credit capacity (a $100 million increase from their previous facility) plus refinanced a $200 million term loan - both with highly favorable terms.
The pricing terms are particularly impressive, as First Industrial secured rates based on a BBB+/Baa1/BBB+ credit rating tier despite actually having BBB/Baa2/BBB ratings. This pricing advantage, available as long as they maintain a leverage ratio below 35%, demonstrates lender confidence in the REIT's financial strength and conservative balance sheet management.
Several key benefits stand out: (1) extended debt maturities to 2029/2030 with extensions, reducing near-term refinancing risk; (2) the removal of the 10 basis point SOFR adjustment on the revolving facility, lowering effective borrowing costs; (3) the accordion feature allowing expansion to $1 billion in revolving capacity, providing additional financial flexibility.
For a logistics-focused REIT with 69.5 million square feet of industrial space, this enhanced borrowing capacity and improved terms create a solid foundation for pursuing acquisition and development opportunities in their target supply-constrained markets without overextending their balance sheet.
This financing package demonstrates First Industrial's proactive capital management approach during a complex interest rate environment. The company has effectively extended its debt maturity profile while simultaneously increasing borrowing capacity and securing pricing typically reserved for higher-rated entities.
The structure reflects sophisticated treasury management - with interest-only payments preserving cash flow, extension options providing flexibility, and the accordion feature creating a pathway to $1 billion in revolving capacity. Most notably, First Industrial has secured these facilities at the BBB+/Baa1/BBB+ pricing tier despite lower formal ratings, indicating their leverage metrics and overall financial position are substantially better than peer averages.
From a strategic perspective, this expanded financial capacity positions the REIT to capitalize on potential acquisition opportunities that may emerge in their 15 target MSAs, particularly in supply-constrained coastal markets where barriers to entry are high and replacement costs continue to increase. The company's focus on these markets, combined with enhanced financial flexibility, creates a competitive advantage in an industrial sector that remains structurally supported by e-commerce and supply chain reconfiguration.
The new revolving credit facility matures on March 16, 2029, with two six-month extension options at the Company's discretion, subject to certain conditions. The facility provides for interest-only payments initially at an interest rate of SOFR plus 77.5 basis points based on the Company's current consolidated leverage ratio and credit ratings. Rates for the new facility no longer include the incremental 10 basis point SOFR adjustment that was part of the previous facility's pricing structure. The facility also provides for a facility fee of 15 basis points and includes an accordion feature that allows First Industrial to increase the aggregate revolving borrowing capacity to
Wells Fargo Securities, LLC, BofA Securities, Inc., PNC Capital Markets LLC and
First Industrial also announced the refinancing of its
Wells Fargo Securities, LLC and PNC Capital Markets LLC served as the Joint Lead Arrangers and Joint Book Runners. Fifth Third Bank, National Association, Regions Capital Markets and BofA Securities, Inc. served as the Joint Lead Arrangers, with Wells Fargo Bank, National Association as Administrative Agent, and PNC Bank, National Association as Syndication Agent.
Given the strength of the Company's key credit metrics, initial pricing for both the senior unsecured revolving credit facility and the unsecured term loan is based on the BBB+/Baa1/BBB+ credit ratings level, even though the Company's current ratings are BBB/Baa2/BBB. This favorable pricing level will be maintained provided that the Company's consolidated leverage ratio, as defined in the applicable agreements, remains less than
"These capital markets transactions support our long-term growth by providing us with expanded capacity and extend the maturity dates to 2030 if we were to exercise our extension options," said Scott Musil, chief financial officer of First Industrial Realty Trust, Inc. "We thank our banking partners for their commitments and support."
About First Industrial Realty Trust, Inc.
First Industrial Realty Trust, Inc. (NYSE: FR) is a leading
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934 ("Exchange Act"). We intend for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on certain assumptions and describe our future plans, strategies and expectations, and are generally identifiable by use of the words "believe," "expect," "plan," "intend," "anticipate," "estimate," "project," "seek," "target," "potential," "focus," "may," "will," "should" or similar words. Although we believe the expectations reflected in forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results will not materially differ. Factors that could have a materially adverse effect on our operations and future prospects include, but are not limited to: changes in national, international, regional and local economic conditions generally and real estate markets specifically; changes in legislation/regulation (including changes to laws governing the taxation of real estate investment trusts) and actions of regulatory authorities; our ability to qualify and maintain our status as a real estate investment trust; the availability and attractiveness of financing (including both public and private capital) and changes in interest rates; the availability and attractiveness of terms of additional debt repurchases; our ability to retain our credit agency ratings; our ability to comply with applicable financial covenants; our competitive environment; changes in supply, demand and valuation of industrial properties and land in our current and potential market areas; our ability to identify, acquire, develop and/or manage properties on favorable terms; our ability to dispose of properties on favorable terms; our ability to manage the integration of properties we acquire; potential liability relating to environmental matters; defaults on or non-renewal of leases by our tenants; decreased rental rates or increased vacancy rates; higher-than-expected real estate construction costs and delays in development or lease-up schedules; the uncertainty and economic impact of pandemics, epidemics or other public health emergencies or fear of such events; risks associated with security breaches through cyberattacks, cyber intrusions or otherwise, as well as other significant disruptions of our information technology networks and related systems; potential natural disasters and other potentially catastrophic events such as acts of war and/or terrorism; technological developments, particularly those affecting supply chains and logistics; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; risks associated with our investments in joint ventures, including our lack of sole decision-making authority; and other risks and uncertainties described under the heading "Risk Factors" and elsewhere in our annual report on Form 10-K for the year ended December 31, 2024, as well as those risks and uncertainties discussed from time to time in our other Exchange Act reports and in our other public filings with the Securities and Exchange Commission (the "SEC"). We caution you not to place undue reliance on forward-looking statements, which reflect our outlook only and speak only as of the date of this press release or the dates indicated in the statements. We assume no obligation to update or supplement forward-looking statements. For further information on these and other factors that could impact us and the statements contained herein, reference should be made to our filings with the SEC.
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SOURCE First Industrial Realty Trust, Inc.
FAQ
What is the size and maturity of First Industrial's new revolving credit facility?
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