**ILPT Prices $1.16 Billion Fixed-Rate Mortgage Financing**
Industrial Logistics Properties Trust (Nasdaq: ILPT), headquartered in Newton, Massachusetts, has announced the pricing of a $1.16 billion, five-year, interest-only fixed-rate mortgage financing. The new funding is secured by a diversified portfolio of 101 industrial properties located across the U.S. mainland and Hawaii.
ILPT will use the financing proceeds, along with $75 million in cash on hand, to fully repay $1.235 billion of existing floating-rate mortgage debt scheduled to mature in October 2025. In addition to reducing the overall debt balance, the fixed-rate financing is set at an interest rate of 6.399%. This move is expected to significantly lower ILPT’s interest expenses and eliminate the need for purchasing future interest rate caps on this segment of debt.
The financing is being provided by a syndicate of leading financial institutions, including 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. Legal representation for the lenders is being handled by Dechert LLP, while ILPT is represented by Skadden, Arps, Slate, Meagher & Flom LLP.
