LXP Industrial enters $900 million restated revolving, term loans

By Marisa Wong

Los Angeles, July 11 – LXP Industrial Trust entered into a second amended and restated credit agreement on July 5 that replaces the company’s amended and restated credit agreement dated Feb. 6, 2019 with KeyBank NA as agent, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement provides for a new $600 million senior unsecured revolver, which refinances and replaces the previous $600 million senior unsecured revolver, and a $300 million unsecured term loan that matures on Jan. 31, 2025, which is a continuation of the prior $300 million unsecured term loan that was set to mature on Jan. 31, 2025.

The new revolver matures July 5, 2026, but it can be extended until July 5, 2027.

With lender approval, the trust can increase the size of the revolver and the term loan up to a combined amount of $1.8 billion.

The credit agreement also provides for a $40 million letter-of-credit sub-facility, a $40 million swingline sub-facility and the ability to request bid rate loans.

Interest is equal to SOFR plus an applicable margin based on the trust’s senior unsecured long-term debt rating. The credit adjustment for daily SOFR and term SOFR is 10 basis points. The applicable margin ranges from 72.5 bps to 140 bps for the revolver and 85 bps to 165 bps for the term loan.

The main financial covenants under the credit agreement are: total indebtedness may not exceed 60% of capitalized value (calculated based on a capitalization rate of 6%, which was 7.25% under the prior agreement); adjusted EBITDA for the period of two consecutive fiscal quarters most recently ending may not be less than 150% of fixed charges for that period; unsecured indebtedness will not be greater than 60% of unencumbered property value, except in connection with a material acquisition the percentage is increased to 65% for a specified period of time; secured indebtedness may not exceed 40% of capitalized value; and unencumbered NOI will not be less than 200% of unsecured debt service.

KeyBanc Capital Markets, Inc., Wells Fargo Securities, LLC and Regions Capital Markets are joint lead arrangers and joint bookrunners.

Wells Fargo Bank, NA and Regions Bank are co-syndication agents.

Bank of America, NA, Citizens Bank, NA, Mizuho Bank, Ltd., JPMorgan Chase Bank, NA, PNC Bank, NA, TD Bank, NA and U.S. Bank NA are co-documentation agents.

The New York-based real estate investment trust expects to use proceeds under the revolver for general working capital, including to fund new investments.

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