Black Creek unit gets $200 million incremental term loan facility

By Angela McDaniels

Tacoma, Wash., Nov. 22 – BCI IV Operating Partnership LP, a wholly owned subsidiary of Black Creek Industrial REIT IV Inc., entered into an amended and restated credit agreement on Tuesday that adds a $200 million incremental term loan facility, of which $100 million has been drawn, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement also provides for a $200 million term loan facility and a $300 million revolving credit facility.

The amendment and restatement also increased the size of the accordion feature to allow the company to further increase the maximum borrowing capacity to $1 billion from $600 million. Any increase may be made in the form of an increase in revolver commitments, term loan commitments or a combination of both.

The maturity date of the term loan facility is Feb. 21, 2024. The maturity date of the revolver is Nov. 19, 2023 and may be extended under a one-year extension option.

The current interest rate is Libor plus 140 basis points for the term loans and Libor plus 150 bps for the revolver. The margin over Libor ranges from 125 bps to 205 bps for the term loans and 130 bps to 210 bps for the revolver, depending on the company’s consolidated leverage ratio.

In addition to interest, the borrower must pay a quarterly unused fee that equals the amount of the unused revolving loan commitment on a given day multiplied by either 0.15% on an annualized basis if more than 50% of the revolving loan commitment is being used or 0.20% on an annualized basis if 50% or less of the revolving loan commitment is being used.

The borrower must pay a ticking fee that equals the amount of the undrawn incremental term commitment on a given day multiplied by 0.20% on an annualized basis. If applicable, the ticking fee will accrue on the undrawn portion beginning with the period from Jan. 19 through a date not later than May 16, 2020.

Borrowings under the credit facility will be available for general business purposes, including but not limited to debt refinancing, property acquisitions, new construction, renovations, expansions, tenant improvement, refinancing of existing lines, financing acquisitions of permitted investments and closing costs and equity investments primarily associated with commercial real estate property acquisitions or refinancings.

Borrowings under the credit facility will be guaranteed by Black Creek and some of its subsidiaries.

As of Tuesday, $331 million was outstanding under the credit facility.

The agreement requires the maintenance of covenants concerning consolidated tangible net worth, consolidated fixed charge coverage ratio, a consolidated leverage ratio, secured debt, secured recourse debt, minimum total asset value (cannot be less than $500 million), unencumbered interest coverage ratio, unencumbered property pool leverage ratio and certain other unencumbered property pool criteria.

Wells Fargo Securities, LLC and BofA Securities, Inc. are the joint lead arrangers and joint bookrunners. Wells Fargo Bank, NA is the administrative agent. Bank of America, NA is the syndication agent. U.S. Bank NA is the revolver joint lead arranger and documentation agent. JPMorgan Chase Bank, NA is the term facility documentation agent. Regions Bank is incremental term facility documentation agent.

Black Creek Industrial is a subsidiary of Black Creek Diversified Property Fund Inc., a real estate investment trust that is based in Denver.

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