Terreno Realty Corporation Announces Private Placement of $150 Million Senior Unsecured Notes, Including $100 Million of Green Bonds

Rhea-AI Summary

Terreno Realty Corporation (TRNO) announced a private placement of $150 million in senior unsecured notes, comprising $100 million in seven-year Green Bonds with a 2.41% interest rate and $50 million in ten-year notes at 2.84%. The notes are set to close around July 15, 2021. Proceeds from the Green Bonds will be allocated to developing green buildings and sustainable projects. PNC Capital Markets LLC acted as the joint-lead placement agent. The notes are exempt from registration under the Securities Act.

Positive

• Issuance of $150 million in senior unsecured notes may strengthen financial position.
• Green Bonds allocation to energy-efficient projects aligns with sustainability goals.

Negative

• Notes are not registered under the Securities Act, which may limit liquidity.

Terreno Realty Corporation (NYSE: TRNO), an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets, announced today the private placement of $150 million senior unsecured notes. The $150 million senior unsecured notes consist of $100 million seven-year senior unsecured notes (the “Green Bonds”) that will bear interest at a fixed rate of 2.41% and $50 million ten-year senior unsecured notes that will bear interest at a fixed rate of 2.84%. The $150 million senior unsecured notes are expected to close on or around July 15, 2021.

The Company intends to allocate the net proceeds of the Green Bonds to recently completed and future green buildings that will be LEED, BREEAM or Energy Star certified. Net proceeds of the Green Bonds may also be used towards projects that improve energy efficiency, sustainable water and wastewater management and renewable energy.

PNC Capital Markets LLC acted as the joint-lead placement agent for the offering. The notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and were offered and sold in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act.

Terreno Realty Corporation acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C.

Additional information about Terreno Realty Corporation is available on the company’s web site at www.terreno.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. We caution investors that forward-looking statements are based on management’s beliefs and on assumptions made by, and information currently available to, management. When used, the words “anticipate”, “believe”, “estimate”, “expect”, “intend”, “may”, “might”, “plan”, “project”, “result”, “should”, “will”, “seek”, “target”, “see”, “likely”, “position”, “opportunity”, “outlook” and similar expressions which do not relate solely to historical matters are intended to identify forward-looking statements. These statements are subject to risks, uncertainties, and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control, including risks related to our ability to meet our estimated forecasts related to stabilized cap rates, the impact of the COVID-19 pandemic on our business, our tenants and the national and local economies, and those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2020 and our other public filings. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or projected. We expressly disclaim any responsibility to update our forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Accordingly, investors should use caution in relying on past forward-looking statements, which are based on results and trends at the time they are made, to anticipate future results or trends.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210514005129/en/

FAQ

What is the purpose of Terreno Realty's $150 million senior unsecured notes issuance?

The proceeds will be used for green buildings and sustainable projects.

What are the interest rates on Terreno Realty's newly issued senior unsecured notes?

The seven-year Green Bonds bear interest at 2.41%, and the ten-year notes bear 2.84%.

When is the expected closing date for the senior unsecured notes by Terreno Realty?

The notes are expected to close on or around July 15, 2021.

Who acted as the placement agent for Terreno Realty's $150 million notes offering?

PNC Capital Markets LLC acted as the joint-lead placement agent.

Are Terreno Realty's senior unsecured notes registered under the Securities Act?

No, the notes have not been registered under the Securities Act.