First Industrial Realty Trust, Inc. (NYSE: FR), a leading owner, operator and developer of industrial real estate, today announced the closing of a new $200 million unsecured term loan with a seven-year term. The loan features interest-only payments and initially bears an interest rate of LIBOR plus 175 basis points. The rate is subject to adjustment based on the Company's leverage or credit ratings.
The Company also entered into interest rate swap agreements to effectively convert the loan’s LIBOR rate to a fixed interest rate of approximately 4.04% per annum based on the loan’s current LIBOR spread. The Company plans to use the proceeds to repay amounts outstanding under its unsecured credit facility and fund general business activities.
Wells Fargo Securities, LLC and PNC Capital Markets LLC served as joint lead arrangers and joint book runners for the term loan with Wells Fargo Bank, National Association as the Administrative Agent and PNC Bank, National Association as the Syndication Agent. Regions Bank, Union Bank, N.A., and Fifth Third Bank also participated in the loan.
"This term loan provides us with attractively priced long-term capital that allows us to prefund our 2014 and 2015 maturities," said Scott Musil, chief financial officer. "We thank our banking relationships for their continued support."