STAG Industrial closes $500 million revolver, $175 million term loan

By Marisa Wong

Morgantown, W.Va., July 26 – STAG Industrial, Inc. said it has closed a $500 million senior unsecured revolving credit facility.

The new facility matures on Jan. 15, 2023, with two six-month extension options.

The facility bears interest at Libor plus 105 basis points, and the facility fee is 15 bps, based on the company’s current leverage level, a reduction in pricing of 10 bps and 5 bps, respectively, compared to the company’s previous unsecured revolver.

The facility includes an accordion feature that allows the company to increase the aggregate size of the facility to $1 billion.

In addition, STAG announced a new $175 million unsecured term loan.

The term loan matures on Jan. 15, 2024, bears interest at Libor plus 120 bps and features a 12-month delayed-draw feature.

The term loan includes an accordion feature that allows the company to increase the aggregate size of the term loan to $350 million.

On July 24, the company entered into four interest rate swaps to fix the interest rate on the term loan at 4.12% through the maturity date.

Wells Fargo Securities, LLC and Merrill Lynch, Pierce, Fenner and Smith Inc. are the bookrunners and also lead arrangers along with Capital One, NA, PNC Capital Markets, LLC, Regions Capital Markets and TD Securities (USA) LLC. Wells Fargo Bank, NA is administrative agent, Bank of America, NA is syndication agent, and Capital One, PNC Capital Markets, Regions Capital Markets and TD Securities are co-documentation agents. Citibank, NA, Raymond James Bank, NA, Royal Bank of Canada and U.S. Bank NA are co-senior managing agents. Other lenders include Branch Banking and Trust Co. and Bank of Montreal.

“This transaction enhanced an already strong balance sheet that continues to be well-positioned to support the company’s attractive opportunity set,” chief financial officer Bill Crooker commented in a press release.

STAG Industrial is a Boston-based real estate investment trust focused on the acquisition and operation of single-tenant industrial properties throughout the United States.

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