Indebtedness | 6. Indebtedness The following table sets forth a summary of the Company’s borrowings outstanding under its respective secured debt, unsecured line of credit and unsecured debt as of September 30, 2022 and December 31, 2021. Indebtedness - Schedule of Secured and Unsecured Debt Outstanding Outstanding Balance at Debt September 30, December 31, Interest rate at Final Secured debt: AIG Loan $ 112,449 $ 114,477 4.08% November 1, 2023 Transamerica Loan 67,731 68,709 4.35% August 1, 2028 Allianz Loan 62,663 63,115 4.07% April 10, 2026 Minnesota Life Loan 20,129 20,453 3.78% May 1, 2028 Minnesota Life Memphis Industrial Loan (1) 56,000 — 3.15% January 1, 2028 JPMorgan Chase Loan (2) — 13,205 5.23% January 1, 2027 Ohio National Life Mortgage 19,201 19,660 4.14% August 1, 2024 Nationwide Loan 15,000 15,000 2.97% October 1, 2027 Lincoln Life Gateway Mortgage 28,800 28,800 3.43% January 1, 2028 Midland National Life Insurance Mortgage 10,820 10,820 3.50% March 10, 2028 Total secured debt $ 392,793 $ 354,239 Unamortized debt issuance costs, net (2,185 ) (2,861 ) Unamortized premium/(discount), net 336 697 Total secured debt, net $ 390,944 $ 352,075 Unsecured debt: $100m KeyBank Term Loan (3) 100,000 100,000 3.10 (4)(5) August 11, 2026 $200m KeyBank Term Loan (3) 200,000 200,000 3.08 (4)(5) February 11, 2027 $150m KeyBank Term Loan (3) 150,000 — 4.50 (4)(5) May 2, 2027 Total unsecured debt $ 450,000 $ 300,000 Unamortized debt issuance costs, net (2,818 ) (2,160 ) Total unsecured debt, net $ 447,182 $ 297,840 Borrowings under line of credit: KeyBank unsecured line of credit (3) 67,500 38,000 4.16 (4) August 11, 2025 Total borrowings under line of credit $ 67,500 $ 38,000 _______________ (1) On March 11, 2022, a wholly-owned subsidiary of the Operating Partnership assumed a mortgage (the “Minnesota Life Memphis Industrial Loan”) with a balance of $56,000 in conjunction with our acquisition of all outstanding interests in the entity owning the portfolio in Memphis, Tennessee. The Minnesota Life Memphis Industrial Loan, held by Minnesota Life Insurance Company, matures on January 1, 2028, bears interest at 3.15% and is secured by the property. The Minnesota Life Memphis Industrial Loan requires monthly installments of interest only through January 1, 2023, and afterwards, monthly installments of principal plus accrued interest through January 1, 2028, at which time a balloon payment is required. The Company has the right to prepay the borrowings outstanding, subject to a prepayment penalty in effect until the loan approaches maturity. (2) On February 1, 2022, the Company repaid in full, the outstanding principal and interest balance of approximately $13,245 on the JPMorgan Chase Loan. The Company recognized a $2,176 loss on extinguishment of debt resulting from prepayment penalty and fees incurred as a result of the repayment. (3) On May 2, 2022, the Company entered into an amendment to the KeyBank unsecured facility. The credit facility agreement, as amended, expanded the availability on the KeyBank unsecured line of credit up to $350 million and entered into a new $150 million unsecured term loan (the “$150m KeyBank Term Loan”), with an accordion feature that allows the total borrowing capacity under the credit facility to be increased to $1 billion, subject to certain conditions. The $150m KeyBank Term Loan matures in May 2027. The maturity date for the KeyBank unsecured line of credit remains unchanged. The amendment also provided for the transition of the reference rate for the KeyBank unsecured line of credit and the $100m, $200m, and $150m KeyBank Term Loans from 1-month LIBOR to the Secured Overnight Financing Rate (“SOFR”). Borrowings under the credit agreement, as amended, bear interest at either (1) the base rate (determined as the highest of (a) KeyBank’s prime rate, (b) the Federal Funds rate plus 0.50% and (c) the Adjusted Term SOFR for a one month tenor plus 1.0% or (2) SOFR, plus, in either case, a spread (A) between 35 and 90 basis points for revolver base rate loans or between 135 and 190 basis points for revolver SOFR rate loans and (B) between 30 and 85 basis points for term base rate loans or between 130 and 185 basis points for term SOFR rate loans, with the amount of the spread depending on the Borrower’s total leverage ratio. (4) For the month of September 2022, the one-month term SOFR for our unsecured debt and borrowings under line of credit was 2.512%. The spread over the applicable rate for the $100m, $150m, and $200m KeyBank Term Loans and KeyBank unsecured line of credit is based on the Company’s total leverage ratio plus the 0.1% SOFR index adjustment. (5) As of September 30, 2022, the one-month term SOFR for the $100m, $150m and $200m KeyBank Term Loans was swapped to a fixed rate of 1.504%, 2.904%, and 1.5273%, respectively. Plymouth Industrial REIT, Inc. all dollar amounts in thousands, except share and per share data Financial Covenant Considerations The Company is in compliance with all respective financial covenants for our secured and unsecured debt and unsecured line of credit as of September 30, 2022. Fair Value of Debt The fair value of our debt and borrowings under line of credit was estimated using Level 3 inputs by calculating the present value of principal and interest payments, using discount rates that best reflect current market interest rates for financings with similar characteristics and credit quality, and assuming each loan is outstanding through its maturity. The following table summarizes the aggregate principal outstanding under the Company’s indebtedness and the corresponding estimate of fair value as of September 30, 2022 and December 31, 2021: Indebtedness - Schedule of Fair Value of Debt Instruments September 30, 2022 December 31, 2021 Indebtedness (in thousands) Principal Outstanding Fair Value Principal Outstanding Fair Value Secured debt $ 392,793 $ 370,473 $ 354,239 $ 369,459 Unsecured debt 450,000 450,000 300,000 300,000 Borrowings under line of credit, net 67,500 67,500 38,000 38,000 Total 910,293 $ 887,973 692,239 $ 707,459 Unamortized debt issuance cost, net (5,003 ) (5,021 ) Unamortized premium/(discount), net 336 697 Total carrying value $ 905,626 $ 687,915 |