Americold enters $2 billion sustainability-linked refinancing loans

By Marisa Wong

Los Angeles, Aug. 24 – Americold Realty Trust, Inc., subsidiary Americold Realty Operating Partnership, LP and some of the operating partnership’s subsidiaries entered into a $2 billion credit agreement on Tuesday with Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement is an extension and increase of Americold’s $1.5 billion senior credit facility dated March 26, 2020.

The new credit agreement includes a $1.15 billion revolving credit facility, consisting of a $575 million U.S. dollar component and a $575 million U.S. dollar-equivalent multicurrency component; a $375 million U.S. dollar term loan A-1 facility; a C$250 million Canadian dollar term loan A-2 facility; and an unfunded $270 million U.S. dollar delayed-draw term loan facility. The credit agreement is unsecured.

The company borrowed $200 million at closing under the term A-1 loan, which was used to pay a portion of the revolver’s U.S. dollar balance. The delayed-draw loan is expected to be used to repay about $266 million of secured CMBS debt prepayable at par beginning Nov. 1 and for general corporate purposes.

Americold said in a Wednesday press release it plans to enter into interest rate swaps to fix a significant portion of the credit facilities, which will maintain pro forma fixed-rate total indebtedness in line with the company’s historical levels.

Additionally, the credit facilities incorporate a sustainability-linked pricing component, with pricing subject to adjustment based on an annual GRESB rating.

The revolver matures in August 2027 and includes two six-month extension options. Based on current credit ratings, the revolver bears interest at adjusted SOFR plus 85 basis points and carries an annual facility fee of 20 bps.

The term loan A-1, upsized from $175 million previously, matures in August 2027 and includes two 12-month extension options. Based on current ratings, the term loan A-1 bears interest at adjusted SOFR plus 95 bps.

The term loan A-2 matures in January 2028 and does not have any extension options. Based on current credit ratings, the term loan A-2 bears interest at adjusted CDOR plus 95 bps.

The delayed-draw loan also matures in January 2028 and does not have any extension options. Based on current ratings, the delayed-draw loan bears interest at adjusted SOFR plus 95 bps.

The applicable margin generally ranges from 72.5 bps to 140 bps for the revolver and 80 bps to 160 bps for the term loans, depending on ratings. The facility fee for the revolver generally ranges from 12.5 bps to 30 bps, also based on ratings.

BofA Securities, Inc., JPMorgan Chase Bank, NA, Citibank, NA, Royal Bank of Canada, Cooperatieve Rabobank UA, New York Branch and Truist Securities, Inc. are joint lead arrangers. BofA, JPMorgan, Citibank and RBC are also joint bookrunners.

JPMorgan, Citibank, RBC, Rabobank and Truist Bank are syndication agents.

Citizens Bank, NA, Goldman Sachs Lending Partners LLC, Huntington National Bank, PNC Bank, NA and Regions Bank are documentation agents.

BofA and Rabobank are sustainability structuring agents.

Americold is an Atlanta-based real estate investment trust focused on the ownership, operation, acquisition and development of temperature-controlled warehouses.

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