Rexford Industrial Realty gets $125 million seven-year term loan

By Angela McDaniels

Tacoma, Wash., Jan. 20 – Rexford Industrial Realty, Inc. said its operating partnership, Rexford Industrial Realty, LP, entered into a credit agreement on Jan. 14 that provides for a $125 million senior term loan due Jan. 14, 2023.

The initial interest rate is Libor plus 150 basis points. The margin ranges from 150 bps to 225 bps, depending on the company’s leverage ratio, according to an 8-K filing with the Securities and Exchange Commission.

If the company or the borrower obtains an investment-grade rating from two or more rating agencies, the margin will range from 140 bps to 235 bps, depending on its rating.

Prepayments are subject to a premium of 2% in year one and 1% in year two.

The credit agreement permits the borrower to add one or more incremental term loans in an amount not to exceed $100 million.

PNC Bank, NA is the administrative agent. U.S. Bank, NA is the syndication agent. PNC Capital Markets LLC and U.S. Bank are the joint lead arrangers and joint bookrunners.

The proceeds were used to repay $116 million of the outstanding balance under the borrower’s revolving credit facility and for general corporate purposes.

The credit agreement is guaranteed by the company and by substantially all of the current and future subsidiaries of the borrower that own an unencumbered property. The credit agreement is not secured by the company’s properties or by equity interests in the subsidiaries that hold those properties.

The credit agreement includes financial covenants that require the company and the borrower to maintain

• A ratio of total debt to total asset value of not more than 60%;

• A ratio of total secured debt to total asset value of not more than 45%;

• A ratio of total secured recourse debt to total asset value of not more than 15%;

• A minimum tangible net worth of at least the sum of $283,622,250 and an amount equal to at least 75% of the net equity proceeds received by the company after March 31, 2014 (other than any such proceeds that are received within 90 days before or after any redemption of equity interests of the company or borrower permitted under the credit agreement);

• A ratio of adjusted EBITDA to fixed charges of at least 1.5 to 1.0;

• A ratio of total unsecured debt to total unencumbered asset value of not more than 60%; and

• A ratio of unencumbered NOI to unsecured interest expense of at least 1.75 to 1.00.

Rexford is a Los Angeles-based industrial real estate firm.

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