Rexford obtains $600 million credit agreement in two tranches

By Wendy Van Sickle

Columbus, Ohio, Feb. 14 – Rexford Industrial Realty, Inc. entered into an agreement on Thursday for a $600 million senior unsecured credit facility, comprising a $500 million revolver and a $100 million term loan facility, according to an 8-K filing with the Securities and Exchange Commission.

The credit facility has an accordion feature permitting up to $900 million of additional commitments.

The revolver has an initial maturity on Feb. 13, 2024 and two six-month extension options. The term loan matures on Feb. 14, 2022.

BofA Securities, Inc. and Citigroup Global Markets Inc. are the joint lead arrangers and bookrunners. Bank of America, NA is the administrative agent. Citibank, NA is the syndication agent. Citizens Bank, NA, JPMorgan Chase Bank, NA, PNC Bank NA, U.S. Bank NA and Capital One, NA are the co-documentation agents.

The revolver will bear interest at Libor plus 105 basis points to 150 bps and the term loan at Libor plus 120 bps to 170 bps, both depending on the company’s leverage ratio. The margin is initially 110 bps for the revolver and 120 bps for the term loan.

The revolver has a facility fee of 15 bps to 30 bps, based on the leverage ratio, regardless of usage.

If the company attains one additional investment grade rating by S&P or Moody’s Investors Service to complement its current investment grade Fitch rating, it may elect to convert the pricing to be based on those ratings, in which event the margin over Libor for the revolver would be 72.5 bps to 140 bps and the margin for the term loan would be 85 bps to 165 bps. The revolving facility fee would be 12.5 bps to 30 bps.

Rexford will use existing interest rate swaps to fix Libor at 1.764% per annum until Aug.14, 2021 for the term loan.

The company must maintain a minimum a ratio of adjusted EBITDA to fixed charges of at least 1.5x; 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 unsecured debt to total unencumbered asset value of not more than 60%; and a ratio of unencumbered net operating income to unsecured interest expense of at least 1.75x.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.