Plymouth Industrial REIT enters $192 million secured loans

By Marisa Wong

Madison, Wis., Nov. 3 – Plymouth Industrial REIT, Inc. entered into a loan agreement with investment entities managed by Senator Investment Group LP for secured loans totaling up to $192 million, with an initial funding amount of about $104 million and $20 million of original issue discount, according to an 8-K filing with the Securities and Exchange Commission.

Loans bear interest at a current pay rate equal to 7%, coupled with payment-in-kind features with respect to the remaining interest at varying rates.

The loans mature on April 28, 2015, subject to an option to extend the maturity date to Oct. 28, 2015.

The company may prepay the loans, subject to a make-whole premium in the event the loans are prepaid.

Borrowings are secured by first-lien mortgages on all of the current and future real property owned by the operating partnership and its subsidiaries and pledges of equity interests.

The loan agreement contains financial covenants that require the maintenance of a fixed-charge coverage ratio and a minimum amount of net operating income.

The company used the proceeds of the initial funding to acquire 13 industrial properties in Chicago, Columbus, Ohio, and Memphis, to repay existing debt, to pay fees and expenses and for working capital purposes.

The real estate investment trust is based in Boston.

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