STAG Industrial gets $150 million term loan due 2021 via Wells Fargo

By Toni Weeks

San Luis Obispo, Calif., March 25 - STAG Industrial, Inc., through STAG Industrial Operating Partnership, LP, entered into a seven-year term loan agreement on March 21 with administrative agent Wells Fargo Bank, NA, according to an 8-K filed Thursday with the Securities and Exchange Commission.

The agreement provides for a $150 million unsecured term loan with an accordion feature for an additional up to $250 million of borrowings. The term loan matures March 21, 2021.

The amount available for borrowing is based on (a) the lesser of (i) 60% of the borrowing base value of the company's buildings 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 based on a 30-year amortization period, less (b) any other unsecured debt.

Borrowings bear interest at Libor plus 170 basis points to 230 bps. The exact margin depends on the company's consolidated leverage ratio. The company did not make a draw at closing; if it had, the margin would have been 170 bps.

The company will pay an unused fee of 22.5 bps.

Under the terms of the agreement, the company may not, as of the last day of any fiscal quarter, allow the

• Maximum consolidated leverage ratio to exceed 60%;

• Maximum secured leverage ratio to exceed 45%;

• Maximum unencumbered leverage ratio to exceed 60%;

• Maximum secured recourse debt to exceed 7.5%;

• Minimum fixed-charge ratio to be less than 1.5:1; and

• Minimum tangible net worth to be less than the sum of (i) $502,634,000 plus (ii) 75% of the net proceeds of any equity issuances received after Sept. 10, 2012.

Wells Fargo Securities, LLC is the lead arranger and bookrunner.

STAG is a Boston-based real estate company.

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