STAG Industrial Boosts Credit Facility Capacity by $250M
- Feb 09, 2021
STAG Industrial Inc., of Boston, has increased the capacity of its unsecured credit facility to $750 million and refinanced $300 million of term loan debt.
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STAG exercised the accordion option of its unsecured credit facility and increased its borrowing capacity from $500 million to $750 million with no change to pricing, maturity and terms. The transaction included a reduction in the LIBOR floor from 25 basis points to zero basis points.
In addition, STAG refinanced a $300 million unsecured term loan, which had been set to mature in April 2021, before extension options. The refinanced loan bears a current interest rate of LIBOR plus a spread of 1.00 percent, which is a 50-basis point spread reduction from the previous term loan, and matures on Feb. 5, 2026.
Bill Crooker, the company’s CFO, said in a prepared statement that the transaction resulted in additional liquidity and improved pricing, while extending STAG Industrial’s weighted average debt maturities.
Wells Fargo Securities LLC served as left lead arranger and bookrunner. BofA Securities Inc., TD Securities LLC, Regions Capital Markets, PNC Capital Markets LLC and Capital One N.A. served as joint lead arrangers. Other lenders included Citibank N.A., U.S. Bank N.A., BMO Harris Bank N.A., Raymond James Bank N.A., Truist Bank, Royal Bank of Canada, The Bank of East Asia Ltd., Associated Bank and American Savings Bank FSB.
STAG did not reply to Commercial Property Executive’s request for additional information.
One at a time
STAG focuses on acquiring and operating single- and two-tenant industrial properties (warehouse, distribution and light manufacturing), preferably fully occupied, acquiring them through investor sales, sale-leasebacks and build-to-suit forward commitments, in deals of $5 million and up.
Barely a week ago, Raith Capital Partners announced the sale of a 3 million-square foot industrial portfolio in the Midwest. In what seems like a typical move for STAG—that is, steadily cherry-picking properties (even if they’re unglamorous) that fit its strategy—the REIT bought just one of the dozen properties, a 764,200-square-foot bulk distribution center in Fort Wayne, Ind.
The facility, at 2902 Pleasant Center Road, is fully occupied by Lippert Components Inc., a leading maker of parts for the recreational vehicle industry.