STAG Industrial enters $150 million term loan with seven-year tenor

By Jennifer Chiou

New York, Feb. 20 - STAG Industrial, Inc. and STAG Industrial Operating Partnership, LP entered into on Feb. 14 a seven-year $150 million term loan agreement with Wells Fargo Bank, NA and other lenders, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The loan may be increased to up to $250 million.

The maturity date is Feb. 14, 2020.

Wells Fargo Securities, LLC acted as lead arranger and bookrunner with Wells Fargo, NA as administrative agent, TD Bank, NA as syndication agent and Capital One, NA as documentation agent.

The filing stated that the amount available under the loan is based on (a) the lesser of (i) 60% of the borrowing base values of the company's properties that form the borrowing base of the loan and (ii) the amount that would create a debt service coverage ratio of not less than 1.6, less (b) any other unsecured indebtedness then outstanding.

STAG Industrial Operating borrowed $25 million under the loan at closing.

Borrowings bear interest at Libor plus 215 basis points to 270 bps based on the company's leverage ratio.

STAG is a Boston-based real estate company.

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