Industrial real estate investment trust Plymouth Industrial REIT Inc. entered into a new $35.7 million senior secured term loan due August 2021 with KeyBank NA, that bears interest at the London Interbank Offered Rate plus 7.0%.
The loan is secured by equity interests in 20 properties held by a wholly owned unit of the company and each of its property-owning subsidiaries.
The proceeds will be used to fully settle its outstanding mezzanine debt held by Torchlight Investors LLC, which is slated to mature in October 2023 and bears interest at 15.0% per annum.
Plymouth Chairman and CEO Jeffrey Witherell said in a release that the move will allow the company to take a "significant step" to simplify its balance sheet and reduce its annual interest expense.
