Terreno Realty Corporation (
- a real estate investment trust (REIT) - obtained a new term
loan worth $50 million. In addition to this, the company amended
an existing revolving credit facility worth $100 million. The
move depicts the company's strategy of strengthening the balance
sheet and reducing financing costs.
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The new five-year term loan bears an annual interest rate of
LIBOR (London Inter-Bank Offer Rate) plus 1.65%-2.65% and will
vary depending on the company's leverage. Additionally, the
company has up to six months to borrow the whole amount.
Terreno Realty amended the existing revolving credit facility to
extend the maturity date and slash the annual interest rate. The
move extended the facility's maturity date, by around one year,
to Jan 17, 2016. Also, the annual interest rate decreased by 85
basis points to LIBOR plus 1.65%-2.65%, depending on the
The administrative agent and lead arranger of these transactions
was Key Bank, whereas PNC Bank of
PNC Financial Services Group Inc. (
, Union Bank, N.A. of
Mitsubishi UFJ Financial Group, Inc. (
, Regions Bank of
Regions Financial Corp. (
and National Association acted as additional lenders.
We expect both the strategic moves to improve the company's
liquidity position and pave way for a rise in shareholder value
going forward. Notably, Terreno Realty provided an update about
its strong investment activity in the fourth quarter of 2012. The
company inked acquisition deals worth $31.8 million, bringing the
total value of the full year 2012 acquisitions to roughly $180.9
million. This was 52% higher than $118.7 million - the 2011
San Francisco-based Terreno Realty owns and operates industrial
real estate properties primarily in six major coastal markets of
the U.S. These include the high barriers-to-entry markets of Los
Angeles, Northern New Jersey/New York City, San Francisco Bay
Area, Seattle, Miami and Washington D.C./Baltimore.
Terreno Realty holds a Zacks Rank #2 (Buy).