Terreno Realty Corporation has closed a new $200 million unsecured term loan with a five-year tenor, maturing on January 15, 2031. The facility will bear interest at a floating rate of SOFR plus 1.15% to 1.65%, with the spread determined by the company’s leverage level; Terreno’s current rate is set at SOFR plus 1.15%. The company used proceeds from the term loan to reduce outstanding borrowings under its $600 million revolving credit facility and for general corporate purposes. 

As part of the transaction, Terreno eliminated the previous 10 basis point SOFR credit spread adjustment premium on all its credit facility borrowings, including term loans, modestly lowering its cost of capital and simplifying pricing across its debt stack. The move enhances financial flexibility as the REIT continues to deploy capital into infill industrial assets in supply-constrained coastal markets. 

KeyBanc Capital Markets, PNC Capital Markets LLC, Regions Capital Markets, U.S. Bank National Association, The Huntington National Bank, and Citizens National Bank, N.A. served as joint lead arrangers on the term loan, with KeyBank National Association acting as administrative agent. PNC Bank, National Association, Regions Bank, U.S. Bank National Association, The Huntington National Bank, and Citizens National Bank, N.A. served as co-syndication agents, while The Bank of Nova Scotia, BMO Bank N.A., Goldman Sachs Bank USA, and Truist Bank participated as additional lenders. 

Terreno Realty Corporation focuses on acquiring, owning, and operating industrial real estate in six major coastal U.S. markets: New York City/Northern New Jersey, Los Angeles, Miami, the San Francisco Bay Area, Seattle, and Washington, D.C.