$1.385 Billion Bridge Loan Facility Due in February 2023 is Fully Repaid
NEWTON, Mass.–(BUSINESS WIRE)–Industrial Logistics Properties Trust (Nasdaq: ILPT) today announced that it has closed on a $1.235 billion debt financing with a final maturity date of October 9, 2027. The financing is secured by a portfolio of 104 industrial properties containing approximately 18.6 million square feet across 31 states. As of June 30, 2022, the 104 properties were 96.8% occupied with a weighted average remaining lease term of approximately 10.5 years.
Simultaneously with the closing of the debt financing, ILPT fully repaid its $1.385 billion bridge loan due in February 2023 with proceeds from the financing and excess cash. The bridge loan was used by ILPT to finance the acquisition of Monmouth Real Estate Investment Corporation earlier this year.
The $1.235 billion debt financing is comprised of a $1.1 billion mortgage and a $135 million mezzanine loan. The loans are interest-only, five-year floating rate loans with two-year initial terms and three one-year extension options, subject to the satisfaction of certain conditions, and carry a total weighted average interest rate of SOFR plus 3.93% per annum. ILPT has purchased an interest rate cap limiting SOFR to 2.25% through October 2024. The loans also allow for a portion of the borrowings to be prepaid without penalty.
Yael Duffy, President and Chief Operating Officer of ILPT, made the following statement:
“We are pleased to have closed this $1.235 billion debt financing in the midst of difficult market conditions. This debt financing enabled us to fully repay our $1.385 billion bridge loan due in February 2023 with debt that has a final maturity date in October 2027 and excess cash. ILPT currently has no near term debt maturities but maintains flexibility to repay significant debt and reduce leverage in the future through prepayment options. This is important because we continue to evaluate strategies to strengthen ILPT’s balance sheet and reduce leverage.”
The loan was provided by Citigroup, UBS Investment Bank, Bank of America, BMO Capital Markets and Morgan Stanley. Skadden, Arps, Slate, Meagher & Flom LLP provided legal counsel to ILPT in this transaction.
Industrial Logistics Properties Trust (Nasdaq: ILPT) is a real estate investment trust, or REIT, focused on owning and leasing high quality distribution and logistics properties that serve the growing needs of e-commerce. As of June 30, 2022, ILPT’s portfolio consisted of 412 properties containing approximately 59.7 million rentable square feet located in 39 states. More than 78.0% of ILPT’s annual rental revenues are derived from investment grade tenants, tenants that are subsidiaries of investment grade rated entities or Hawaii land leases. ILPT is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with more than $37 billion in assets under management as of June 30, 2022 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. ILPT is headquartered in Newton, MA. For more information, visit www.ilptreit.com.
WARNING CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Whenever ILPT uses words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, “will”, “may” and negatives or derivatives of these or similar expressions, ILPT is making forward-looking statements. These forward-looking statements are based upon ILPT’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by ILPT’s forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond ILPT’s control. For example:
- Ms. Duffy states that ILPT currently has no near term debt maturities but maintains flexibility to repay significant debt and reduce leverage in the future through prepayment options. However, economic and market conditions and unanticipated events may limit ILPT’s ability to utilize collateral release and prepayment provisions in its debt.
- Ms. Duffy states that ILPT continues to evaluate strategies to strengthen ILPT’s balance sheet and reduce leverage. However, ILPT may not elect to pursue any of the strategies it is evaluating, and as a result, ILPT may not be able to strengthen its balance sheet and reduce leverage.
The information contained in ILPT’s filings with the Securities and Exchange Commission, or SEC, including under the caption “Risk Factors” in ILPT’s periodic reports or incorporated therein, identifies important factors that could cause ILPT’s actual results to differ materially from those stated or implied by ILPT’s forward-looking statements. ILPT’s filings with the SEC are available at the SEC’s website at www.sec.gov.
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A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
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Director, Investor Relations