Industrial Logistics Properties closes $1.24 billion five-year loans

By Marisa Wong

Los Angeles, Sept. 23 – Industrial Logistics Properties Trust announced it closed on a $1,235,000,000 debt financing with a final maturity date of Oct. 9, 2027, according to a press release.

The new 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.

The loans carry a total weighted average interest rate of SOFR plus 393 basis points. The company has purchased an interest-rate cap limiting SOFR to 2.25% through October 2024.

A portion of the borrowings may be prepaid without penalty.

The financing is secured by a portfolio of 104 industrial properties across 31 states. As of June 30, the 104 properties were 96.8% occupied with a weighted average remaining lease term of roughly 10.5 years.

Simultaneously with the closing of the debt financing, the company fully repaid its $1,385,000,000 bridge loan due in February 2023 with proceeds from the financing and excess cash. The company had used the bridge loan to finance its acquisition of Monmouth Real Estate Investment Corp. earlier this year.

The new 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 the company for the transaction.

Industrial Logistics is a Newton, Mass.-based real estate investment trust focused on owning and leasing high quality distribution and logistics properties for e-commerce.

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