**ILPT Secures $1.16B Fixed-Rate Mortgage Financing**
Newton, MA-based Industrial Logistics Properties Trust (Nasdaq: ILPT) announced on Monday that it has priced $1.16 billion in five-year, interest-only fixed-rate mortgage financing. The new debt is secured by a portfolio of 101 industrial properties located across the U.S. mainland and Hawaii.
ILPT plans to use the financing proceeds, along with $75 million in cash on hand, to fully repay $1.235 billion in floating-rate mortgage debt that was scheduled to mature in October 2025. The move is expected to lower the company’s interest expense by reducing its total outstanding debt, securing a fixed 6.399% interest rate, and eliminating the need for future interest rate cap purchases for this tranche.
The new mortgage financing is being 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. Legal representation for the lenders was provided by Dechert LLP, while Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to ILPT.
