First Industrial Realty Trust Inc (FR)

[Egor]

First Industrial Realty Trust Closes Three Secured Financings Totaling $154 Million

Last update: 6/3/2009 5:51:00 PM--Proceeds to Be Used Principally to Reduce Debt, Including Retirement of June 2009 Maturity CHICAGO, June 3, 2009 /PRNewswire-FirstCall via COMTEX/ -- First Industrial Realty Trust, Inc. (FR), a leading provider of industrial real estate supply chain solutions, today announced the closing of three secured financing transactions totaling $154 million. "We are pleased to complete these secured financing transactions, backed by properties in our large, diversified industrial portfolio," said Bruce W. Duncan, president and chief executive officer of First Industrial. "With these proceeds, we will retire our June 2009 maturity, and seek additional opportunities to further reduce leverage." The largest financing was a $77.0 million, 10-year loan with John Hancock Life Insurance Company, secured by 27 properties totaling approximately 2.6 million square feet. The interest rate is fixed at 7.87% over a 30-year amortization schedule. First Industrial also closed on a $62.5 million, seven-year financing with Massachusetts Mutual Life Insurance Company, arranged through its Babson Capital Management LLC investment subsidiary, secured by 23 properties totaling approximately 3.1 million square feet. That loan has a fixed rate of 7.75%, and a 25-year amortization schedule including two years of interest only. In addition, the Company secured a $14.7 million, seven-year loan from American National Insurance Company on a single asset totaling 600,000 square feet. That loan is at a fixed rate of 7.5% over a 25-year amortization schedule. Mr. Duncan added, "Upon the retirement of our June 2009 notes, we have less than $25 million of balance sheet debt maturing prior to March 2011." First Industrial will use the proceeds from the financings principally for the reduction of debt, as well as for other general corporate purposes. The loan-to-value ratio for each of these financings was less than 65%.