First Industrial Realty Trust Secures $425 Million and $375 Million Loans for Strategic Growth

First Industrial Realty Trust Secures $800 Million Through New Loans

In a significant move to strengthen its financial position and promote future growth, First Industrial Realty Trust, Inc. (NYSE: FR) has announced the successful closing of two major unsecured term loans. The total sum of these loans is a substantial $800 million, comprising $425 million with a maturity date of January 22, 2030, and a $375 million loan that expands an existing $300 million facility, set to mature on January 22, 2029.

This refinancing initiative is designed to capitalize on favorable market conditions and to support the Company's long-term strategic objectives. The loans, which feature interest-only payments at an initial rate of SOFR plus 85 basis points, are anticipated to bolster First Industrial’s operational capacity and enhance funding for new projects.

The Details of the Loans

The $425 million loan presents First Industrial Realty Trust with an option for a one-year extension, contingent upon certain conditions, which adds a layer of flexibility to their financial strategy. Notably, the previous adjustment of 10 basis points to the SOFR interest rate has been eliminated, which could enable more favorable terms moving forward.

The financial institutions involved in this arrangement include Wells Fargo Securities, LLC and PNC Capital Markets LLC as the Joint Lead Arrangers and Joint Book Runners. Additional support has come from BofA Securities, Inc., U.S. Bank National Association, Regions Capital Markets, among others, demonstrating a broad backing from the financial community.

Reflecting on this pivotal achievement, Scott Musil, CFO of First Industrial Realty Trust, expressed gratitude towards their banking partners for their ongoing support, emphasizing the importance of this refinancing in facilitating the Company’s commitment to growth.

Expanded Loan Facility

In addition to the first loan, the second term loan has been expanded to $375 million, allowing First Industrial to access more capital than previously available. The initial maturity for this facility is also January 22, 2029, and includes two optional one-year extensions. Like the first loan, this facility will also have the interest solely at SOFR plus 85 basis points after the removal of the prior SOFR adjustment.

Joint Lead Arrangers for the second loan include U.S. Bank National Association and BofA Securities, Inc., further underscoring the collaborative approach taken by various financial institutions in supporting First Industrial’s endeavors. The administrative roles are well defined, showcasing the structured nature of the refinanced loan agreements.

Strategic Implications of the Refinancing

First Industrial Realty Trust’s strategic decision to refinance and expand its loan capabilities signals confidence in its operational model, especially in the logistics real estate sector, which has seen consistent demand. As they continue to own and develop high-quality facilities, this financial maneuver will provide the necessary leverage to pursue new opportunities, secure corporate partnerships, and enhance supply chain capabilities across its 70.4 million square feet of managed industrial space.

As market dynamics shift, First Industrial’s proactive approach in securing these loans is both a testament to their business acumen and a commitment to sustaining growth in an ever-competitive environment. The Company is not only poised to navigate through potential market fluctuations but is also aiming to expand its foothold significantly within the real estate investment sector.

These developments positions First Industrial Realty Trust as a key player in the logistics segment as they prepare for coming challenges and opportunities in the market, ensuring that they remain at the forefront of logistical real estate management.

For more detailed insights and information, stakeholders and interested parties are encouraged to visit First Industrial Realty Trust's official website at www.firstindustrial.com.

Conclusion

The refinancing of these term loans equips First Industrial with additional resources to harness growth and adapt to an evolving real estate landscape. Their collaboration with numerous financial institutions not only secures funding but also builds a solid framework for future expansion and operational excellence.