Plymouth Industrial Closes $300M Unsecured Credit Facilities

The unsecured $200 million revolving facility and $100 million term loan have an accordion feature for an additional $200 million of borrowing capacity.
Jeff Witherell, Chairman & CEO, Plymouth Industrial REIT. Image courtesy of Plymouth Industrial REIT

Plymouth Industrial REIT Inc., of Boston, has entered into a new $300 million unsecured credit facility, which consists of a $200 million revolving credit facility and a $100 million term loan.

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The new credit facility reportedly provides expanded line capacity and greater capital structure flexibility, with lower borrowing costs. It replaces an existing $100 million secured facility that was to mature in August 2023, and the $100 million unsecured term loan replaces a $100 million secured term loan maturing later this month.

The unsecured revolving credit facility has an accordion feature that enables Plymouth to increase the total borrowing capacity under the credit facility and term loan up to an aggregate of $500 million, subject to certain conditions.

The new credit facility matures in October 2024 and has two six-month extension options, subject to certain conditions; the new term loan matures in October 2025. The amounts outstanding under the facility and the term loan bear interest at LIBOR (at a floor of 0.30 percent) plus a margin between 145 and 200 basis points (previously set at 200 to 250 basis points), depending on Plymouth’s leverage.

Plymouth Chairman & CEO Jeff Witherell noted in a prepared statement that this move to an unsecured credit facility and term loan occurred earlier than anticipated and that commitments came from both existing and new relationships.

KeyBanc Capital Markets, as lead arranger, arranged the new facility and term loan. Syndicate lenders included Barclays Bank PLC, JPMorgan Chase Bank, BMO Harris Bank N.A., and CapOne N.A., with KeyBank N.A. serving as administrative agent.

At closing, Plymouth used $81.0 million of the $100 million proceeds under the new term loan to repay outstanding borrowings under the previous term loan, with the balance earmarked for working capital and future acquisitions. The company does not currently have any amounts outstanding under the new credit facility.

Active acquirer

Plymouth has been busy lately with acquisitions of various sizes in the Midwest and Southeast. Last December, the REIT bought a 2.1-million-square-foot, 10-building industrial portfolio in Indianapolis for $62 million. The main component, the nine-building Shadeland Commerce Center, was 95 percent leased to 26 tenants and is adjacent to two other facilities Plymouth already owned.

Then in January, Plymouth bought another portfolio, this one in the Southeast and fully occupied. The REIT paid $34.7 million for two buildings in Atlanta and three in Savannah, Ga., that total just more than 924,000 square feet. Also in January,  Plymouth picked up a 402,604-square-foot single-tenant distribution center in Findlay, Ohio, from a local private investor for $16.8 million.

In September, Plymouth acquired two in-fill industrial facilities in St. Louis, totaling 566,408 square feet and a single property in Jacksonville, Fla., for a total of $51.2 million.