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First Industrial to Raise $300M Through Private Notes Offering

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First Industrial Realty Trust, Inc. (FR - Free Report) announced that it will raise $300 million through a private placement of senior unsecured notes. This move will lower the company’s borrowing expenses and boost its financial flexibility.

The notes have a weighted average interest rate of 2.81% and consist of two tranches. The first tranche comprises 2.74% Series F Guaranteed Senior Notes of $100 million, with a maturity term of 10 years. The second tranche consists of 2.84% Series G Guaranteed Senior Notes of $200 million, with a maturity term of 12 years. The offer is expected to close on Sep 17, 2020, subject to customary closing conditions.

The company intends to use the proceeds from this notes offering for its general corporate purposes, including repayment of borrowings on the unsecured line of credit and making new investments.

Scott Musil, chief financial officer of First Industrial said, "This $300 million private placement will further lower our borrowing costs and extend and ladder our maturities."

Shares of this Zacks Rank #2 (Buy) company have appreciated 0.9% over the past year against the 8.7% decline recorded by the industry. the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Amid the e-commerce boom and supply-chain strategy transformations, demand for industrial real estate has been strong. Moreover, apart from the accelerated adoption of e-commerce, logistics real estate is anticipated to benefit from the likely increase in inventory levels over the long term.

Companies are tapping the debt market to bolster their liquidity and boost financial flexibility in this low interest-rate environment. Some of these companies that raised capital in recent months by offering senior notes are Digital Realty (DLR - Free Report) , OUTFRONT Media (OUT - Free Report) , Regency Centers (REG - Free Report) and Boston Properties.

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