First Industrial Realty Trust, NexBank, BioDelivery Sciences arrange private placements

Kansas City, Kan., Feb. 23 – Private placement activity showed signs of strength on Thursday with reports of financings by First Industrial Realty Trust, Inc., NexBank Capital, Inc. and BioDelivery Sciences International, Inc.

First Industrial Realty Trust priced $125 million of 4.3% series A guaranteed senior notes due April 20, 2027 and $75 million of 4.4% series B guaranteed senior notes due April 20, 2029 through a private placement, according to an 8-K filing with the Securities and Exchange Commission.

The notes will be issued through operating partnership First Industrial, LP and guaranteed by First Industrial Realty. The parent company entered into a note and guaranty agreement on Feb. 21, and the transaction is expected to settle on April 20.

BofA Merrill Lynch and Wells Fargo Securities LLC were the placement agents.

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

In its deal, NexBank Capital said it raised another $80 million in its private placement of fixed-to-floating rate senior notes due March 16, 2026, bringing the total deal size to $155 million.

NexBank closed the oversubscribed private placement of notes with a reopening of the initial offering, according to a company notice.

As announced Sept. 9, the issuer upsized its private placement of fixed-to-floaters to $75 million, up $25 million from the offering size previously announced on March 18, 2016.

Interest is fixed at 5.5% for five years and after that will float at Libor plus 435.5 basis points.

Proceeds will be used to repay debt and for general corporate purposes.

Sandler O’Neill & Partners, LP is placement agent. The notes were sold to institutional and high net worth individual investors.

NexBank Capital is a Dallas-based financial services company.

Meanwhile, BioDelivery Sciences International entered into an up to $75 million senior credit facility with affiliates of CRG LP to retire its existing credit facility and provide additional working capital, according to a press release.

The credit facility consists of $45 million to be drawn at closing and the ability to access additional funding of up to $30 million in two tranches for a total of $75 million, based on the achievement of certain revenue and market capitalization milestones through Sept. 30, 2018.

The loan has a six-year term with the first three years being interest-only.

Based in Raleigh, N.C., BioDelivery Sciences is a specialty biopharmaceutical company focused on drug-delivery technologies to develop and commercialize therapeutics, nutraceuticals and micronutrients.

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