Rexford Industrial obtains $300 million term loan, $1 billion revolver

By Rebecca Melvin

Concord, N.H., May 27 – Rexford Industrial Realty, Inc. and subsidiary Rexford Industrial Realty, LP as borrower entered into an amended and restated credit agreement on Thursday for a $300 million five-year senior unsecured term loan facility and a $1 billion four-year senior unsecured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

Proceeds of the term loan, all of which was borrowed at closing, will be used to pay down the outstanding balance under the borrower’s existing $150 million unsecured term loan, terminate the associated swap, partially pay down the outstanding balance under the borrower’s revolver and for general corporate purposes.

Proceeds of the revolver will be used for general corporate purposes.

The revolver has two six-month extension options, which if exercised would make the revolver mature at the same time as the term loan on May 26, 2027.

The credit agreement also permits the borrower to add one or more incremental term loans in an aggregate amount not to exceed $1.2 billion. Any borrowing increase is subject to the satisfaction of specified conditions.

The borrowings under the revolver will bear interest at term SOFR plus 72.5 basis points to 140 bps, and borrowings under the term loan will bear interest at term SOFR plus 80 bps to 160 bps, both depending on the borrower’s debt ratings.

The revolver has a facility fee of 12.5 bps to 30 bps, based on the leverage ratio, regardless of usage.

In addition, the credit agreement features a sustainability-linked pricing component under which the margin and the credit facility fee can decrease by 1 bp or increase by up to 4 bps if the borrower meets or does not meet certain sustainability performance targets.

The loans many be voluntarily prepaid.

Financial and other covenants include maintaining a ratio of total indebtedness to total asset value of not more than 60%; maintaining a ratio of total secured debt to total asset value of not more than 45%; maintaining a ratio of adjusted EBITDA to fixed charges of at least 1.50 to 1.0; maintaining a ratio of total unsecured debt to total unencumbered asset value of not more than 60%; and maintaining a ratio of unencumbered NOI to unsecured interest expense of at least 1.75 to 1.0.

BofA Securities, Inc. and JPMorgan Chase Bank NA are the joint lead arrangers and bookrunners. PNC Capital Markets LLC is also a joint lead arranger. Bank of America, NA is the administrative agent. JPMorgan Chase Bank is the syndication agent. J.P. Morgan Securities LLC is sustainability structuring agent. Capital One NA, Goldman Sachs Bank USA, Mizuho Bank Ltd., PNC Bank NA, Bank of Nova Scotia, Truist Bank, U.S. Bank NA and Wells Fargo Bank NA are the co-documentation agents.

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

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