TORONTO, March 02, 2023 (GLOBE NEWSWIRE) — Nexus Industrial REIT (the “REIT”) NXR announced today that it has entered into senior unsecured credit facilities totaling $375 million (the “Unsecured Facilities”).

The unsecured facilities were arranged by a syndicate of six banks, with BMO Capital Markets acting as lead arranger and sole bookrunner. The unsecured facilities consist of a $190 million revolving facility, a $175 million term loan facility and a $10 million swingline facility and allow the REIT to borrow in the form of bank acceptances or advances at the main interest rate. At the closing of the unsecured facilities, the REIT had an unencumbered pool of assets of $310 million. The REIT has previously announced $285 million in acquisitions, which may be added to the unencumbered asset pool after the acquisitions close. The unsecured facilities replace the REIT’s previous $140 million secured credit facility.

Borrowings under the unsecured facilities are valued based on a grid that is initially measured based on the REIT’s debt to total assets. At closing and as long as the REIT’s debt to total assets is less than 50%, borrowing under the unsecured facilities will be charged at the bank acceptance rate plus 170 basis points or the bank prime plus 70 basis points. If and when the REIT obtains a credit rating, pricing is based on that credit rating instead.

“The REIT’s ability to obtain unsecured debt at prices consistent with those that institutional borrowers would obtain is a testament to the quality of the REIT’s portfolio and its balance sheet.” commented Kelly Hanczyk, the REIT’s chief executive officer. “The unsecured facilities will provide Nexus with a significant increase in the financial resources and flexibility to continue our growth plans and mark the completion of the next step in the process of achieving an institutional grade credit rating for the REIT.”

About Nexus Industrial REIT

Nexus is a growth-oriented…