STAG Industrial and its operating partnership amended three agreements covering $525 million of outstanding senior unsecured notes. The change concerns subsidiary guarantees: certain property-owning subsidiaries may be released from their guarantees if they no longer guarantee other indebtedness and other conditions are met. The notes’ interest rates, principal amounts and maturities are unchanged.
- Notes covered: The amendments apply to $80 million of notes bearing 4.42% interest and due December 30, 2026; $20 million at 4.42% due February 20, 2027; $100 million at 4.27% due June 13, 2028; $275 million at 2.80% due September 29, 2031; and $50 million at 2.95% due September 28, 2033.
- What changes: Property-owning subsidiaries that guarantee these notes may be released from those guarantees if, among other conditions, they cease guaranteeing other debt. The amendments do not say that any subsidiary has already been released.
- What stays the same: The other material terms of the note agreements remain unchanged. The amendments do not change the stated interest rates, amounts or due dates of the notes.
The change is to the guarantees supporting the notes, not to the notes’ payment terms. It may allow STAG to remove a property-owning subsidiary from these guarantees when that subsidiary no longer backs other indebtedness, subject to the agreements’ conditions.