CHICAGO, Dec. 14, 2011 /PRNewswire/ -- First Industrial Realty Trust, Inc. (NYSE: FR), a leading owner and operator of industrial real estate and provider of supply chain solutions, today announced it has closed a new $450 million senior unsecured revolving credit facility agreement.
The new facility matures on December 12, 2014, with a one-year extension option subject to certain conditions. The agreement provides for interest-only payments initially at a base rate of LIBOR plus 210 basis points based on the Company's leverage ratio, plus an unused facility fee that ranges from 25 to 35 basis points based on the amount drawn on the facility. The facility includes an accordion feature that allows First Industrial to increase the aggregate revolving borrowing capacity to $500 million.
Approximately $100 million of new borrowings under the new facility were used to pay off and retire a term loan under the prior credit facility due September 2012, which bore interest of LIBOR plus 325 basis points. Approximately $52 million of new borrowings under the new facility were used to pay off and retire the revolving line of credit under the prior credit facility due September 2012, which bore interest of LIBOR plus 275 basis points plus a 50 basis point facility fee."We are pleased to close this new credit facility, the terms of which reflect the progress we have made in improving our balance sheet," said Bruce W. Duncan, president and CEO of First Industrial Realty Trust. "This facility will help lower our cost of capital and provide capacity and flexibility to manage our debt maturity schedule and fund select growth opportunities." Wells Fargo Securities, LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated were the Joint Lead Arrangers and Joint Book Runners, with Wells Fargo Bank, National Association as Administrative Agent, and Bank of America, N.A. as Syndication Agent, and PNC Bank, National Association, U.S. Bank National Association and Regions Bank as Documentation Agents.