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ILPT Prices $1.16B Fixed-Rate Mortgage Financing
Newton, MA-based Industrial Logistics Properties Trust (Nasdaq: ILPT) said Monday it had priced $1.16 billion of five-year, interest-only fixed-rate mortgage financing. The new financing is secured by a portfolio of 101 industrial properties located on the U.S. mainland and in Hawaii.
The financing proceeds and $75 million of cash on hand will be used to fully repay $1.235 billion of floating-rate mortgage debt due in October 2025. The new mortgage financing is expected to reduce ILPT’s interest expense by decreasing the amount of debt outstanding, lowering the interest rate to a fixed 6.399% and eliminating the need to purchase future interest rate caps on this tranche of debt.
The financing is provided by Citi Real Estate Funding Inc., Bank of America, Bank of Montreal, Morgan Stanley Mortgage Capital Holdings LLC, Royal Bank of Canada and UBS AG New York Branch, represented by Dechert LLP. Skadden, Arps, Slate, Meagher & Flom LLP serves as legal counsel to ILPT in this transaction.
- ◦Financing



