STAG Industrial, Inc. (
a real estate investment trust (REIT), has recently entered into a
$350 million unsecured credit facility, which consists of $150
million term loan and $200 million unsecured revolving credit
The $200 million credit facility is scheduled to mature in
September 2016 with an option for a one-year extension and includes
an accordion feature by virtue of which the company can increase
the borrowing capacity to $300 million.
The $150 million unsecured term loan is scheduled to mature in
September 2017 and replaces the company's prior $100 million
secured corporate revolving credit facility. This loan also retires
the remaining balance of a secured loan which was scheduled to
mature in October 2013.
Under the terms of the new credit facility, STAG Industrial will
incur interest at a floating rate which will be equal to the
Eurodollar rate or the base rate plus a spread that depends upon
its leverage ratio. As of September 13, 2012, the spread on the
revolving credit facility and term loan was 1.65%. STAG Industrial
had no amounts outstanding under the revolving credit facility and
$100 million was outstanding under the term loan.
This is an important strategic financial arrangement for STAG
Industrial as it provides additional liquidity and enhances
financing flexibility. This transaction enables the company to
extend its existing debt maturity and seize investment
opportunities through acquisitions, which in turn is expected to
boost top-line growth.
STAG Industrial is focused on the acquisition, ownership and
management of single-tenant industrial properties throughout the
United States. The company is focused on the acquisition of Class
B, single tenant industrial properties primarily in secondary
markets. Presently, the company's portfolio consists of 129
properties in 29 states with approximately 22.1 million rentable
STAG Industrial currently retains a Zacks #2 Rank, which
translates into a short-term Buy rating. We also have a long-term
Neutral recommendation on the stock. One of its competitors,
First industrial Realty Trust Inc (
retains a Zacks #3 rank, which translates into a short term Hold
FIRST INDL RLTY (FR): Free Stock Analysis
STAG INDUSTRIAL (STAG): Free Stock Analysis
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