First Industrial Realty closes on seven-year $260 million term loan

By Wendy Van Sickle

Columbus, Ohio, Sept. 14 – First Industrial Realty Trust, Inc. closed on a new seven-year $260 million term loan, according to a Monday press release.

The term loan features interest-only payments initially and interest at Libor plus 160 basis points. The rate varies based on the company’s leverage or credit ratings. Through a rate swap, First Industrial effectively converted the loan’s rate to a fixed rate of about 3.39% per annum based on its current credit spread.

Wells Fargo Securities, LLC, PNC Capital Markets LLC, Regions Capital Markets and U.S. Bank National Association served as joint lead arrangers and book runners for the term loan. Wells Fargo Bank, NA acted as administrative agent; and PNC Bank, NA, Regions Bank and U.S. Bank NA as co-syndication agents.

The company said it plans to initially use the proceeds to repay amounts outstanding under its unsecured credit facility and for other general business purposes.

“This new seven-year term loan provides us with attractively priced long-term capital to support our investment strategy and prefund approximately $240 million of debt maturing in the fourth quarter of 2015 and the first quarter of 2016 with a weighted average interest rate of 6.2%,” Scott Musil, First Industrial chief financial officer, said in the release.

First Industrial is a Chicago-based owner and operator of industrial real estate and provider of supply-chain services.

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