INDUS Announces a New $150 Million Delayed Draw Term Loan and Amendment to Existing Revolving Credit Facility
April 25 2022 - 6:00PM
Business Wire
INDUS Realty Trust, Inc. (Nasdaq: INDT) (“INDUS” or the
“Company”), a U.S. based industrial/logistics REIT, announced
today that it has amended and restated its Credit Agreement, dated
August 5, 2021 (as amended, the “Amended Credit Agreement”), to
increase the size to $250 million with the addition of a new $150
million delayed draw term loan with a term of five years (the “Term
Loan”). In addition, INDUS has amended the maturity of its existing
$100 million revolving credit facility under the Amended Credit
Agreement from August 2024 to a new expiration date of April 2025
which remains subject to two, one-year extension options. The
Amended Credit Agreement includes an accordion feature enabling the
Company to increase the total borrowing up to an aggregate of $500
million which may take the form of additional revolving loan
capacity or additional term loans, subject to certain conditions.
The Term Loan bears an interest rate subject to a pricing grid
based upon the Company’s ratio of total indebtedness to total asset
value. Based on the Company’s current indebtedness, the Term Loan
would bear an interest rate of SOFR plus a spread of 1.15%.
Concurrent with the closing on the Term Loan, the Company entered
into an interest rate swap to fix the interest rate on the Term
Loan at an effective rate of 4.15%. The Amended Credit Facility is
secured by a pledge of the equity interests in the Company’s
subsidiaries that own certain unencumbered properties that comprise
the borrowing base under the facility.
The Company intends to make an initial draw from the Term Loan
in May to repay approximately $62 million of existing mortgage debt
(the “Repaid Debt”). Upon these repayments, the properties
previously secured by the Repaid Debt will become unencumbered and
available to increase the Company’s borrowing capacity under the
Amended Credit Agreement. The remaining Term Loan proceeds will be
available to fund acquisitions and developments, repay additional
debt and for general corporate purposes. The Company has
approximately one year to draw down the entire $150 million in
available proceeds from the Term Loan. The Company currently has no
borrowings outstanding under its revolving credit facility.
“The delayed draw Term Loan and Amended Credit Agreement provide
the Company with ample liquidity to support the growth of our
portfolio and additional flexibility to match our capital needs
more closely with future investments,” said Michael Gamzon,
President and Chief Executive Officer. “With our current cash
balance and the availability under the Term Loan, we believe we
have the capital to fund our existing development and acquisition
pipelines while maintaining conservative leverage ratios.
Additionally, with the anticipated mortgage repayments, we have no
maturities of fixed rate debt until 2027 and currently have no
amounts drawn on our revolving credit facility. We are pleased with
the participation of new lenders in our bank group along with the
continued participation and expanded commitments from our existing
banking relationships.”
JPMorgan Chase Bank, N.A. and Citibank, N.A. were the Joint Lead
Arrangers and Joint Book Runners, with JPMorgan Chase Bank, N.A. as
Administrative Agent, and Citibank, N.A. as Syndication Agent. BMO
Harris Bank, N.A., Citizens Bank, N.A., KeyBank National
Association and TD Bank, N.A. also participated in the Term
Loan.
About INDUS
INDUS is a real estate business principally engaged in
developing, acquiring, managing, and leasing industrial/logistics
properties. INDUS owns 36 industrial/logistics buildings
aggregating approximately 5.4 million square feet in Connecticut,
Pennsylvania, North Carolina, South Carolina, and Florida.
Forward-Looking Statements
This Press Release includes “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements include INDUS’ beliefs
and expectations regarding future events or conditions including,
without limitation, statements regarding expected draw downs on the
Term Loan, expected interest rates, uses of funding from the Term
Loan and Amended Credit Agreement, the Company’s expected capital
availability and the sufficiency of its liquidity. Although INDUS
believes that its plans, intentions and expectations reflected in
such forward-looking statements are reasonable, it can give no
assurance that such plans, intentions or expectations will be
achieved. The projected information disclosed herein is based on
assumptions and estimates that, while considered reasonable by
INDUS as of the date hereof, are inherently subject to significant
business, economic, competitive and regulatory uncertainties and
contingencies, many of which are beyond the control of INDUS, and
which could cause actual results and events to differ materially
from those expressed or implied in the forward-looking statements.
Other important factors that could affect the outcome of the events
set forth in these statements are described in INDUS’ Securities
and Exchange Commission filings, including the “Business,” “Risk
Factors” and “Forward-Looking Statements” sections in INDUS’ Annual
Report on Form 10-K for the fiscal year ended December 31, 2021,
filed with the SEC on March 11, 2022, as updated by other filings
with the Securities and Exchange Commission. INDUS disclaims any
obligation to update any forward-looking statements as a result of
developments occurring after the date of this press release except
as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20220425005931/en/
Jon Clark Executive Vice President, Chief Financial Officer
(860) 286-2419 jclark@indusrt.com
Investor Relations investor@indusrt.com
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