Plymouth Industrial REIT Makes Early Improvement to Balance Sheet with Conversion of Remaining Series B Preferred Stock
22 August 2022 - 10:15PM
Business Wire
Plymouth Industrial REIT, Inc. (NYSE: PLYM) announced the
Company has improved its balance sheet earlier than anticipated
with the conversion of the remaining Series B Preferred Stock held
by Madison International Realty (“Madison”) into approximately 1.9
million shares of common stock on a leverage-neutral basis. The
Company also affirmed that with this earlier conversion and the
execution of an interest rate swap for $150 million of notional
unsecured debt, it still expects to report full year 2022 results
within its previously issued guidance ranges.
On August 12, 2022, Madison informed the Company that it had
elected to convert its remaining 2,205,882 shares of Series B
Preferred Stock into common stock. Based on the contractual
liquidation preference and the 20-day VWAP (volume weighted average
price) of $18.84 at the time of conversion, Madison was entitled to
receive 2,712,690 shares of common stock. Pursuant to the terms of
the agreement, Plymouth elected a combination settlement comprised
of 1,915,511 shares of common stock and $15.0 million in cash. The
cash portion was provided by a one-time use of the Company’s ATM
program to transact with one institutional investor at $21.35 a
share.
Plymouth also announced that the rate on approximately 95% of
its outstanding debt as of June 30, 2022 is now fixed. The Company
recently entered into interest rate swap agreements with JPMorgan
Chase Bank, N.A., Wells Fargo Bank, N.A. and Capital One, N.A. for
a total notional amount of $150 million to fix the USD-SOFR
floating rate at 2.904%. The spread over the applicable rate on the
$150 million term loan is based on the Company's total leverage
ratio. Outstanding borrowings on Plymouth’s revolving credit
facility comprise the Company’s only remaining floating-rate
debt.
Jeff Witherell, Chief Executive Officer and Co-Founder of
Plymouth, noted, “While the conversion of these Series B preferred
shares was earlier than we had originally anticipated, we have now
simplified and strengthened our balance sheet on a leverage-neutral
basis. Madison’s support as a shareholder and as a past joint
venture partner has played an important role in Plymouth’s growth,
and we welcome them as our largest shareholder. With the strategic
execution of our ATM program through a block trade, we were able to
add another top 10 shareholder, partially fund the conversion with
cash and minimize the number of common shares that would have
otherwise been required.”
Ronald Dickerman, Madison International Realty Founder and
President, added, “Madison is pleased to participate in the
simplification of Plymouth’s balance sheet while further supporting
its stock, given what we continue to see as a high growth business
led by a highly capable management team.”
About Plymouth
Plymouth Industrial REIT, Inc. (NYSE: PLYM) is a real estate
investment trust focused on the acquisition, ownership and
management of single and multi-tenant industrial properties,
including distribution centers, warehouses, light industrial and
small bay industrial properties, located in primary and secondary
markets within the main industrial, distribution and logistics
corridors of the United States.
Forward-Looking Statements
This press release includes “forward-looking statements” that
are made pursuant to the safe harbor provisions of Section 27A of
the Securities Act of 1933 and of Section 21E of the Securities
Exchange Act of 1934. The forward-looking statements in this
release do not constitute guarantees of future performance.
Investors are cautioned that statements in this press release,
which are not strictly historical statements, including, without
limitation, statements regarding management's plans, objectives and
strategies, constitute forward-looking statements. Such
forward-looking statements are subject to a number of known and
unknown risks and uncertainties that could cause actual results to
differ materially from those anticipated by the forward-looking
statements, many of which may be beyond our control.
Forward-looking statements generally can be identified by the use
of forward-looking terminology such as “may,” “plan,” “seek,”
“will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or
“continue” or the negative thereof or variations thereon or similar
terminology. Any forward-looking information presented herein is
made only as of the date of this press release, and we do not
undertake any obligation to update or revise any forward-looking
information to reflect changes in assumptions, the occurrence of
unanticipated events, or otherwise.
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Tripp Sullivan SCR Partners (615) 942-7077
TSullivan@scr-ir.com
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