STAG Industrial Refinances Unsecured $750 Million Credit Facility, Refinances Unsecured $150 Million Term Loan, And Reprices $675 Million Of Unsecured Debt

Rhea-AI Summary

STAG Industrial (NYSE:STAG) announced the refinancing of its $750 million senior unsecured revolving credit facility and a $150 million term loan maturing in 2022. The new revolving facility matures on October 24, 2025 and features improved pricing at LIBOR plus 0.775%. The term loan has also been refinanced with a new rate of LIBOR plus 0.85%, maturing on March 15, 2027, and features an interest rate swap fixing the rate at 2.15%. These changes extend debt maturities and reduce borrowing costs.

Positive

• Refinanced $750 million credit facility with lower pricing (LIBOR + 0.775%).
• Refinanced $150 million term loan with maturity extended to March 15, 2027.
• Improved pricing on existing unsecured debt totaling $675 million.

Negative

• None.

BOSTON, Oct. 26, 2021 /PRNewswire/ -- STAG Industrial, Inc. (the "Company") (NYSE:STAG) today announced that it refinanced its $750 million senior unsecured revolving credit facility, refinanced a $150 million unsecured term loan scheduled to mature in 2022, and improved pricing on $675 million of unsecured debt.

The refinanced revolving credit facility matures on October 24, 2025, with two six-month extension options, subject to certain conditions. The refinanced facility bears a current interest rate of LIBOR plus a spread of 0.775% and a facility fee of 15 basis points based on the Company's current leverage level and debt ratings, a reduction in pricing of 12.5 and 5 basis points, respectively, compared to the previous unsecured revolving facility.

In addition, the Company refinanced a $150 million unsecured term loan that was set to mature in March 2022. The refinanced term loan bears a current interest rate of LIBOR plus a spread of 0.85%, a reduction in pricing of 15 basis points compared to the previous term loan, and now matures on March 15, 2027. The Company entered into interest rate swaps to fix the interest rate of the new term loan at 2.15% as of April 1, 2022 through March 15, 2027.

The Company improved pricing on its $175 million unsecured term loan E, $200 million unsecured term loan F, and $300 million unsecured term loan G. The term loans now bear a current interest rate of LIBOR plus a spread of 0.85%, a reduction in pricing of 15 basis points compared to the previous pricing, with no change to maturities.

"This transaction resulted in improved pricing while extending our weighted average debt maturities" said Bill Crooker, President and Chief Financial Officer of the Company. "We appreciate the support of our debt capital partners and look forward to working closely with them as we continue to pursue our attractive opportunity set."

For the senior unsecured revolving credit facility, Wells Fargo Securities, LLC served as Left Lead Arranger and Bookrunner, with, BofA Securities, Inc., serving as a Joint Lead Arranger and Bookrunner. TD Securities, LLC, Regions Capital Markets, PNC Capital Markets, LLC, and Truist Securities, Inc. served as Joint Lead Arrangers. Other lenders include Citibank, N.A., U.S. Bank N.A., BMO Harris Bank N.A., Raymond James Bank, N.A., Royal Bank of Canada, The Bank of East Asia, Limited, and Associated Bank, N.A.

For the unsecured term loan, Wells Fargo Securities, LLC served as Left Lead Arranger and Bookrunner, with, TD Securities LLC serving as Joint Lead Arranger and Bookrunner. Other lenders include Regions Bank, Bank of America, N.A., PNC Bank, N.A., Truist Bank, Raymond James Bank, N.A., U.S. Bank N.A., BMO Harris Bank N.A., and Associated Bank, N.A.

About STAG Industrial, Inc.

STAG Industrial, Inc. is a real estate investment trust focused on the acquisition, ownership and operation of single-tenant, industrial properties throughout the United States. As of June 30, 2021, the Company's portfolio consists of 501 buildings in 39 states with approximately 100.1 million rentable square feet.

For additional information, please visit the Company's website at www.stagindustrial.com.

Forward-Looking Statements

This press release, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends 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 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, are generally identifiable by use of the words "believe," "will," "expect," "intend," "anticipate," "estimate," "should," "project" or similar expressions. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control and which could materially affect actual results, performances or achievements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, the risk factors discussed in the Company's annual report on Form 10-K for the year ended December 31, 2020 as updated by the Company's quarterly reports on Form 10-Q. Accordingly, there is no assurance that the Company's expectations will be realized. Except as otherwise required by the federal securities laws, the Company disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

 

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SOURCE STAG Industrial, Inc.

FAQ

What refinancing did STAG Industrial announce on October 26, 2021?

STAG Industrial announced the refinancing of a $750 million revolving credit facility and a $150 million term loan.

What are the new terms of STAG Industrial's $750 million credit facility?

The new credit facility features an interest rate of LIBOR plus a spread of 0.775% and matures on October 24, 2025.

What is the maturity date for STAG Industrial's refinanced $150 million term loan?

The refinanced $150 million term loan now matures on March 15, 2027.

How has STAG Industrial improved its debt pricing?

STAG Industrial reduced pricing on its debt by 12.5 to 15 basis points compared to previous rates.