Item 1.01. Entry into a Material Definitive Agreement.
On May 31, 2023 (the “Effective Date”), First Industrial Realty Trust, Inc., a Maryland corporation (the “Company”) and First Industrial, L.P. (the “Operating Partnership”) entered into:
•the First Amendment to Fourth Amended and Restated Unsecured Revolving Credit Agreement with Wells Fargo Bank, National Association, individually and as administrative agent, and the other lenders thereunder (the “Revolver Amendment”), to amend that certain Fourth Amended and Restated Unsecured Revolving Credit Agreement, dated as of July 7, 2021 (as amended, the “Revolver Agreement”), related to the Company’s $750.0 million unsecured revolving credit facility which matures on July 7, 2025 (the “Revolving Credit Facility”);
•the First Amendment to Amended and Restated Unsecured Term Loan Agreement with Wells Fargo Bank, National Association, individually and as administrative agent, and the other lenders thereunder (the “2021 Term Loan Amendment”), to amend that certain Amended and Restated Unsecured Term Loan Agreement, dated as of July 7, 2021 (as amended, the “2021 Term Loan Agreement”), related to the Company’s $200.0 million unsecured term loan which matures on July 7, 2026 (the “2021 Term Loan”); and
•the First Amendment to Amended and Restated Unsecured Term Loan Agreement with Wells Fargo Bank, National Association, individually and as administrative agent, and the other lenders thereunder (the “2022 Term Loan Amendment”), to amend that certain Amended and Restated Unsecured Term Loan Agreement, dated as of April 18, 2022 (as amended, the 2022 Term Loan Agreement”), related to the Company’s $425.0 million unsecured term loan which matures on October 18, 2027 (the “2022 Term Loan”).
The Company and Operating Partnership entered into these amendments to provide that borrowings under the Revolving Credit Facility and the 2021 Term Loan bear interest based on the secured overnight financing rate as administered by the Federal Reserve Bank of New York (SOFR) instead of the London interbank offered rate (LIBOR) and to make certain conforming changes to the interest calculation mechanics applicable to the 2022 Term Loan so they are consistent with the terms of the amended 2021 Term Loan.
Following the effectiveness of the above amendments:
•The borrowings under the Revolving Credit Facility will bear interest at a rate equal to (A) (x) one month, three month or six month SOFR plus a 0.10% adjustment, (y) daily SOFR plus a 0.10% adjustment, or (z) the Base Rate (as defined in the Revolver Agreement), based on the election of the Operating Partnership, plus (B) an applicable margin based on the Company’s current credit ratings and consolidated leverage ratio.
•The borrowings under the 2021 Term Loan will bear interest at a rate equal to (A) (x) one month, three month or six month SOFR plus a 0.10% adjustment, (y) daily SOFR plus a 0.10% adjustment, or (z) the Base Rate (as defined in the 2021 Term Loan Agreement), based on the election of the Operating Partnership, plus (B) an applicable margin based on the Company’s current credit ratings and consolidated leverage ratio.
•The borrowings under the 2022 Term Loan will bear interest at a rate equal to (A) (x) one month, three month or six month SOFR plus a 0.10% adjustment, (y) daily SOFR plus a 0.10% adjustment, or (z) the Base Rate (as defined in the 2022 Term Loan Agreement), based on the election of the Operating Partnership, plus (B) an applicable margin based on the Company’s current credit ratings and consolidated leverage ratio.
The interest rate applicable to borrowings under the Revolving Credit Facility, the 2021 Term Loan, and the 2022 Term Loan may vary based on the type of borrowing selected by the Operating Partnership under the applicable facility and is further subject to adjustment based on changes to the Company’s leverage and credit ratings and the Company’s achievement of a sustainability-linked pricing metric.
Other than the interest rates, the material terms of the Revolving Credit Facility, the 2021 Term Loan, and the 2022 Term Loan remain unchanged.
The foregoing descriptions of the Revolver Amendment, the 2021 Term Loan Amendment, and the 2022 Term Loan Amendment do not purport to be complete and are qualified in their entirety by reference to the Revolver Amendment, the 2021 Term Loan Amendment, and the 2022 Term Loan Amendment attached as Exhibits 10.1, 10.2 and 10.3, respectively, hereto.
