Indus adds $150 million delayed-draw loan, extends revolver maturity

By Wendy Van Sickle

Columbus, Ohio, April 25 – Indus Realty Trust, Inc. amended and restated its credit agreement dated Aug. 5, 2021 to add a $150 million five-year delayed-draw term loan, according to a press release.

The company also amended the existing $100 million revolver to extend the maturity to April 2025 from August 2024. The revolver continues to have two one-year extension options.

An accordion feature enables the company to increase the total capacity under the credit agreement to $500 million by adding further term loan or revolving commitments.

Term loan borrowings will bear interest at SOFR plus a margin that would be 115 basis points based on the company’s current ratio of total debt to total asset value.

Concurrently with closing of the term loan, the company entered into an interest swap rate to fix the effective rate at 4.15%.

Indus plans to make an initial draw from the term loan in May to repay about $62 million of mortgage debt. Remaining proceeds will be available to fund acquisitions and developments, to repay additional debt and for general corporate purposes.

The company has about one year to draw down the full $150 million available under there term loan.

“The delayed-draw term loan and amended credit agreement provide the company with ample liquidity to support the growth of our portfolio and additional flexibility to match our capital needs more closely with future investments,” Michael Gamzon, president and chief executive officer of Indus, said in the release.

“With our current cash balance and the availability under the term loan, we believe we have the capital to fund our existing development and acquisition pipelines while maintaining conservative leverage ratios.

“Additionally, with the anticipated mortgage repayments, we have no maturities of fixed rate debt until 2027 and currently have no amounts drawn on our revolving credit facility.”

The amended credit facility is secured by a pledge of the equity interests in the company’s subsidiaries that own certain unencumbered properties that comprise the borrowing base under the facility.

JPMorgan Chase Bank, NA and Citibank, NA were the joint lead arrangers and joint bookrunners.

JPMorgan Chase Bank is administrative agent.

Citibank is the syndication agent.

The borrower is a New York-based industrial/logistics real estate investment trust.

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