#USA #Chicago #financing #Logistics Real Estate #First Industrial Realty

First Industrial Realty Trust Secures Major Financing

First Industrial Realty Trust, Inc., widely recognized as a top-tier owner, operator, and developer in the logistics real estate sector, has announced a noteworthy achievement in its financial strategy. The company has finalized an impressive $850 million senior unsecured revolving credit facility and has also refined a $200 million unsecured term loan. This robust financial maneuver aims to bolster the company's growth aspirations and expand operational capacity.

Key Details of the Financing

The recently established revolving credit facility amends and restates an earlier arrangement while additionally increasing the borrowing capacity by $100 million. Scheduled to mature on March 16, 2029, the facility offers two six-month extension options, giving the company added flexibility. The initial borrowing terms favor interest-only payments at a rate of SOFR plus 77.5 basis points, aligning with the company’s current consolidated leverage ratio and credit ratings. Notably, the pricing structure for this new facility eliminates the previous incremental SOFR adjustment of 10 basis points and includes a 15 basis point facility fee.

Additionally, this facility features an accordion option, allowing First Industrial to escalate its borrowing potential up to $1 billion, conditional upon specific terms. The esteemed financial institutions involved in this arrangement include Wells Fargo Securities, BofA Securities, PNC Capital Markets, and U.S. Bank National Association, acting as joint lead arrangers and joint book runners.

Refinanced Term Loan Details

In tandem with this credit facility, First Industrial has refinanced its $200 million unsecured term loan, which also enables the same flexibility for maturity extensions. This term loan has an expected maturity date of March 17, 2028, with similar one-year extension options available, underscoring First Industrial’s cautious approach towards long-term planning. The financing terms for this loan indicate an interest rate structured around SOFR plus 85 basis points and an additional SOFR adjustment of 10 basis points.

The financial partners are similarly prominent, with Wells Fargo Securities and PNC Capital Markets taking lead roles, and other notable entities such as Fifth Third Bank and Regions Capital Markets providing support as joint lead arrangers.

Strategic Implications for Growth

The successful closure of this financing indicates a robust standing within the company's credit metrics, allowing First Industrial to initiate this new facility at favorable pricing levels based on a BBB+/Baa1/BBB+ credit rating. Although the company’s current ratings stand slightly lower at BBB/Baa2/BBB, adherence to financial covenants could sustain this advantageous pricing tier, provided the consolidated leverage ratio remains below 35.0%.

Scott Musil, Chief Financial Officer, emphasized the significance of these transactions, stating, "These capital markets initiatives bolster our long-term growth strategy, expanding our capacity and extending maturity timelines to 2030 if we choose our extension options". This statement reflects First Industrial’s proactive approach in navigating the logistics real estate landscape, especially amid fluctuating market conditions.

First Industrial Realty Trust continues to maintain its competitive edge in the logistics property market by servicing significant corporations and regional firms essential to modern supply chains. The firm operates through a comprehensive platform that ensures customer satisfaction and high-quality logistics facilities across diverse markets.

Conclusion

With the closure of these substantial financing agreements, First Industrial Realty Trust is well-positioned for future growth and operational efficacy in logistics real estate. The strategic financial decisions made now will undoubtedly reinforce its standing within the industry, allowing for potential expansion and enhanced service delivery across its key markets. As the landscape of logistics continues to evolve, First Industrial remains committed to adapting and thriving in the face of new challenges and opportunities.