Rexford Industrial Realty, Inc. - 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Rexford Industrial Realty, Inc. on May 12, 2016. The filing discloses the creation of a direct financial obligation through an interest rate swap transaction entered into by the Company's operating partnership, Rexford Industrial Realty, L.P.
Key Financial Metrics
The filing does not provide comprehensive financial statements, revenue, profit, cash flow, or liquidity metrics. The specific financial instrument details are as follows:
- Instrument: Interest rate swap with U.S. Bank National Association.
- Notional Amount: $100 million.
- Underlying Debt: Floating rate debt based on LIBOR under a Credit Agreement dated January 14, 2016.
- Effective Date: August 14, 2018.
- Termination Date: January 14, 2022.
- Fixed Rate: 1.406% plus an applicable margin under the Credit Agreement.
Material Changes
The Company has hedged $100 million of previously unhedged floating-rate debt. This transaction converts the interest rate exposure on this portion of the debt from a floating rate (LIBOR) to a fixed rate structure effective August 14, 2018.
Outlook, Risks, and Management Commentary
The primary purpose of this transaction is to mitigate the risk associated with the Company's floating interest rate exposure. The filing does not contain forward-looking guidance, general risk factors, or management commentary beyond the description of the swap mechanics.
Key Facts for Investor Verification
- Verify the specific "applicable margin" under the Credit Agreement to determine the total fixed interest cost.
- Confirm the total outstanding balance under the Credit Agreement to assess the percentage of debt now hedged.
- Review the Credit Agreement dated January 14, 2016, for prepayment penalties or other covenants related to the swap.
- Note that the swap does not become effective until August 14, 2018, leaving the debt unhedged in the interim.