BOSTON–(BUSINESS WIRE)–Plymouth Industrial REIT, Inc. (NYSE: PLYM) announced that the company improved its balance sheet ahead of schedule with the conversion of the remaining Series B preferred stock held by Madison International Realty (“Madison”) into approximately 1.9 million common shares on a leverage-neutral basis. The Company also stated that with this prior conversion and the execution of an interest rate swap for $150 million of notional unsecured debt, it still expects to report results for the entire year 2022 within previously published guidance ranges.

On August 12, 2022, Madison notified the Company that it had elected to convert its remaining 2,205,882 Series B Preferred Shares into common stock. Based on the contractual liquidation preference and 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 has elected a combined settlement consisting of 1,915,511 common shares 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 an institutional investor at $21.35 per 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, NA, Wells Fargo Bank, NA and Capital One, NA for an aggregate notional amount of $150 million to fix the floating rate USD-SOFR at 2.904%. The spread over the applicable rate on the $150 million term loan is based on the Company’s total debt ratio. The outstanding borrowings under Plymouth’s revolving credit facility include the Company’s only remaining floating rate debt.

Jeff Witherell, Chairman and CEO and Co-Founder of Plymouth, said: “Although the conversion of these Series B preferred shares was earlier than we 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 former joint venture partner has been instrumental in Plymouth’s growth, and we welcome them as our largest shareholder. Through the strategic execution of our ATM program through a block transaction, we were able to add another top 10 shareholder, partially fund the cash conversion and minimize the number of common shares that would otherwise have been required.

Ronald Dickerman, Founder and Chairman of Madison International Realty, added, “Madison is delighted to be part of simplifying Plymouth’s balance sheet while further supporting its stock, given what we continue to view as a high-led growth company. by a highly competent 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, industrial properties light and small bays, located in primary and secondary markets within major US industrial, distribution and logistics corridors.

Forward-looking statements

This press release contains “forward-looking statements” that are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The forward-looking statements contained in this press 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. These 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 can generally be identified by the use of forward-looking words such as “may”, “plans”, “seeks”, “will”, “expects”, “intends”, “estimates”, “plans”, “believes” or “continues” or the negative thereof or variations thereof or similar terminology. Any forward-looking information presented herein is made only as of the date of this press release, and we undertake no obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of events unforeseen or otherwise.

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