Americold Realty Trust, Inc. (NYSE: COLD) (“Americold” or the
“Company”), the world’s largest publicly traded REIT focused on the
ownership, operation, acquisition, and development of
temperature-controlled warehouses, announced today it has entered
into interest rate swaps to fix a significant portion of the base
interest rates, related to its senior unsecured term loan
facilities, into the year 2027.
As a result of these transactions, the only remaining floating
rate debt in the Company’s capital structure is the outstanding
amounts drawn under the Company’s senior unsecured revolver.
On August 31, 2022, the Company announced it entered into an
interest rate swap on $200 million of the $375 million U.S. dollar
term loan A-1 facility. Based on Americold’s current credit
ratings, the total fixed interest rate is 4.70%. The swap is
effective as of September 23, 2022, and it matures December 29,
2023. Today, the Company announced it has entered into another
interest rate swap on this $200 million tranche in order to extend
the total fixed interest rate period and reduce the total fixed
interest rate during the extension period. This swap is effective
as of December 29, 2023 and it matures July 30, 2027. Based on
Americold’s current credit ratings, the total fixed interest rate
is 4.10% during the extension period on this interest rate
swap.
Today, the Company announced it has entered into an interest
rate swap on the remaining $175 million of the $375 million U.S.
dollar term loan A-1 facility. Based on Americold’s current credit
ratings, the total fixed interest rate is 4.52%. The swap is
effective as of November 30, 2022, and it matures July 30,
2027.
The Company has now fixed all of its senior unsecured term loan
facilities into the year 2027, including its $375 million U.S.
dollar term loan A-1 facility, its $270 million U.S. dollar delayed
draw term loan facility, and its CAD 250 million Canadian term loan
A-2 facility. Below is a summary of the interest rate swaps and
contractual interest rates for all of the Company’s senior
unsecured term loan facilities:
Unsecured Term LoanTranche |
Notional Amount |
Base Interest Rate Swap(4) |
ContractualInterest
Rate(5) |
EffectiveSwap Dates |
A-1 |
$200 million USD(1)(2) |
3.65% |
4.70% |
9/23/2022 – 12/29/2023 |
A-1 |
$200 million USD(1)(3) |
3.05% |
4.10% |
12/29/2023 – 7/30/2027 |
A-1 |
$175 million USD(3) |
3.47% |
4.52% |
11/30/2022 – 7/30/2027 |
Delayed draw |
$270 million USD(2) |
3.05% |
4.10% |
11/1/2022 – 12/31/2027 |
A-2 |
CAD 250 million(2) |
3.59% |
4.54% |
9/23/2022 – 12/31/2027 |
(1) For the $200 million A-1 tranche, the Company has entered
into two, separate interest rate swaps. One is effective from
September 23, 2022 to December 29, 2023 (announced on August 31,
2022) and one is effective from December 29, 2023 to July 30, 2027
(announced on December 5, 2022).
(2) Interest rate swap announced on August 31, 2022.
(3) Interest rate swap announced on December 5, 2022.
(4) Base Interest Rate Swap is the fixing of 1 month SOFR (USD
tranches) and 1 month CDOR (CAD tranche) for the Effective Swap
Dates.
(5) Contractual Interest Rate is the Base Interest Rate Swap
plus Credit Spread (95 basis points, based on Americold’s current
credit ratings) plus SOFR Adjustment (10 basis points, for USD
tranches only).
Additionally, as previously announced, on November 1, 2022, the
Company drew on its $270 million U.S. dollar delayed draw term loan
facility to pay off its last significant tranche of secured, CMBS
debt, which matured May 1, 2023, but was prepayable at par
beginning November 1, 2022.
About the Company
Americold is the world’s largest publicly traded REIT focused on
the ownership, operation, acquisition and development of
temperature-controlled warehouses. Based in Atlanta, Georgia,
Americold owns and operates 249 temperature-controlled warehouses,
with approximately 1.5 billion refrigerated cubic feet of storage,
in North America, Europe, Asia-Pacific, and South America.
Americold’s facilities are an integral component of the supply
chain connecting food producers, processors, distributors and
retailers to consumers.
Forward-Looking Statements
This document contains statements about future events and
expectations that constitute forward-looking statements.
Forward-looking statements are based on our beliefs, assumptions
and expectations of our future financial and operating performance
and growth plans, taking into account the information currently
available to us. These statements are not statements of historical
fact. Forward-looking statements involve risks and uncertainties
that may cause our actual results to differ materially from the
expectations of future results we express or imply in any
forward-looking statements, and you should not place undue reliance
on such statements. Factors that could contribute to these
differences include the following: the impact of supply chain
disruptions, including, among others, the impact on labor
availability, raw material availability, manufacturing and food
production; construction materials and transportation;
uncertainties and risks related to public health crises, including
the ongoing COVID-19 pandemic; adverse economic or real estate
developments in our geographic markets or the
temperature-controlled warehouse industry; rising interest rates
and inflation in operating costs, including as a result of the
COVID-19 pandemic; general economic conditions; labor and power
costs; labor shortages; risks associated with the ownership of real
estate generally and temperature-controlled warehouses in
particular; acquisition risks, including the failure to identify or
complete attractive acquisitions or the failure of acquisitions to
perform in accordance with projections and to realize anticipated
cost savings and revenue improvements; our failure to realize the
intended benefits from our recent acquisitions, and including
synergies, or disruptions to our plans and operations or unknown or
contingent liabilities related to our recent acquisitions; risks
related to expansions of existing properties and developments of
new properties, including failure to meet targeted completion dates
and budgeted or stabilized returns within expected time frames, or
at all, in respect thereof; a failure of our information technology
systems, systems conversions and integrations, cybersecurity
attacks or a breach of our information security systems, networks
or processes could cause business disruptions or loss of
confidential information; risks related to privacy and data
security concerns, and data collection and transfer restrictions
and related foreign regulations; defaults or non-renewals of
significant customer contracts, including as a result of the
ongoing COVID-19 pandemic; uncertainty of revenues, given the
nature of our customer contracts; our failure to obtain necessary
outside financing; risks related to, or restrictions contained in,
our debt financings; decreased storage rates or increased vacancy
rates; risks related to current and potential international
operations and properties; difficulties in expanding our operations
into new markets, including international markets; risks related to
the partial ownership of properties, including as a result of our
lack of control over such investments and the failure of such
entities to perform in accordance with projections; our failure to
maintain our status as a REIT; possible environmental liabilities,
including costs, fines or penalties that may be incurred due to
necessary remediation of contamination of properties presently or
previously owned by us; financial market fluctuations; actions by
our competitors and their increasing ability to compete with us;
changes in applicable governmental regulations and tax legislation,
including in the international markets; geopolitical conflicts,
such as the ongoing conflict between Russia and Ukraine; additional
risks with respect to the addition of European operations and
properties; changes in real estate and zoning laws and increases in
real property tax rates; our relationship with our associates,
including the occurrence of any work stoppages or any disputes
under our collective bargaining agreements and employment related
litigation; liabilities as a result of our participation in
multi-employer pension plans; uninsured losses or losses in excess
of our insurance coverage; the potential liabilities, costs and
regulatory impacts associated with our in-house trucking services
and the potential disruptions associated with our use of
third-party trucking service providers to provide transportation
services to our customers; the cost and time requirements as a
result of our operation as a publicly traded REIT; changes in
foreign currency exchange rates; the impact of anti-takeover
provisions in our constituent documents and under Maryland law,
which could make an acquisition of us more difficult, limit
attempts by our stockholders to replace our directors and affect
the price of our common stock, $0.01 par value per share, of our
common stock; and the potential dilutive effect of our common stock
offerings.
Words such as “anticipates,” “believes,” “continues,”
“estimates,” “expects,” “goal,” “objectives,” “intends,” “may,”
“opportunity,” “plans,” “potential,” “near-term,” “long-term,”
“projections,” “assumptions,” “projects,” “guidance,” “forecasts,”
“outlook,” “target,” “trends,” “should,” “could,” “would,” “will”
and similar expressions are intended to identify such
forward-looking statements. Examples of forward-looking statements
included in this document include, among others, statements about
our plans and expectations regarding refinancing our CMBS debt, use
of proceeds and hedging strategies, including entering into
interest rate swaps to reduce floating rate debt exposure to
historical levels. We qualify any forward-looking statements
entirely by these cautionary factors. Other risks, uncertainties
and factors, including those discussed under “Risk Factors” in our
Annual Report on Form 10-K for the year ended December 31, 2021 and
in our Quarterly Report on Form 10-Q for the quarter ended March
31, 2022, could cause our actual results to differ materially from
those projected in any forward-looking statements we make. We
assume no obligation to update or revise these forward-looking
statements for any reason, or to update the reasons actual results
could differ materially from those anticipated in these
forward-looking statements, even if new information becomes
available in the future.
Contacts:
Americold Realty TrustInvestor RelationsTelephone:
678-459-1959Email: investor.relations@americold.com
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