NEW YORK–(BUSINESS WIRE)–INDUS Realty Trust, Inc. (Nasdaq: INDT) (“INDUS” or the “Company”), a U.S.-based industrial/logistics REIT, today announced that it has amended and restated its credit agreement, dated August 5, 2021 (as amended, the “Amended Credit Agreement”), to increase in size to $250 million with the addition of a new five-year $150 million deferred draw term loan (the “Term Loan”). In addition, INDUS has changed the maturity of its existing $100 million revolving credit facility under the Amended Credit Agreement from August 2024 to a new expiry date of April 2025, which remains subject to two one-year extension options. The amended credit agreement includes an accordion clause allowing the company to increase total borrowings up to a total of $500 million, which may take the form of additional revolving lending capacity or additional term loans , subject to certain conditions. The term loan bears interest at a rate subject to a pricing schedule based on the ratio of the Company’s total debt 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 of 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 interests in the Company’s subsidiaries that own certain unencumbered assets that constitute the borrowing base under the facility.
The Company intends to make an initial drawdown on the Term Loan in May to repay approximately $62 million of existing mortgage debt (the “Repaid Debt”). Upon such repayments, the properties previously secured by the repaid debt will become free and available to increase the Company’s borrowing capacity under the amended credit agreement. The remaining proceeds from the term loan 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 all of the $150 million available proceeds from the term loan. The Company currently has no outstanding borrowings under its revolving credit facility.
“The term loan and amended deferred draw credit agreement provide the company with sufficient liquidity to support the growth of our portfolio and additional flexibility to more closely match our capital requirements with future investments,” said Michael Gamzon, President and CEO. “With our current cash balance and availability under the term loan, we believe we have the capital to fund our existing development and acquisition pipelines while maintaining conservative leverage ratios. planned mortgages, we have no fixed rate debt maturing until 2027 and currently have no draws on our revolving credit facility We are excited about the participation of new lenders in our banking group as well as the continued participation and expanded commitments from our existing banking relationships.”
JPMorgan Chase Bank, NA and Citibank, NA were the lead arrangers and joint bookrunners, with JPMorgan Chase Bank, NA as administrative agent, and Citibank, NA as syndication agent. BMO Harris Bank, NA, Citizens Bank, NA, KeyBank National Association and TD Bank, NA also participated in the term loan.
INDUS is a real estate company whose main activity is the development, acquisition, management and rental of industrial/logistic properties. INDUS owns 36 industrial/logistics buildings comprising approximately 5.4 million square feet in Connecticut, Pennsylvania, North Carolina, South Carolina and Florida.
This press release contains “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 drawdowns on the Term Loan, expected interest rates, uses of the financing of the Term Loan and Amended Credit Agreement, the Company’s expectations of the availability of capital and the adequacy of its liquidity. Although INDUS believes that its plans, intentions and expectations reflected in these forward-looking statements are reasonable, it cannot guarantee that these plans, intentions or expectations will be realized. The projected information disclosed herein is based on assumptions and estimates which, although believed to be 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 control of INDUS, and which could cause actual results and events to differ materially from those expressed or implied by the forward-looking statements. Other important factors that could affect the outcome of the events set forth in these statements are described in INDUS’ filings with the Securities and Exchange Commission, including the “Business”, “Risk Factors” and “Forward-Looking” sections. Statements” of the 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 forward-looking statements as a result of developments occurring after the date of this press release, except as required by law.