Industrial Logistics Properties Trust (ILPT) announced the pricing of $1.16 billion in new five-year, interest-only fixed rate mortgage financing. This new loan is secured by a portfolio of 101 industrial properties located across the U.S. mainland and Hawaii. The closing of this financing is expected to occur on or about June 26, 2025.
The proceeds from this new financing, combined with $75 million of cash on hand, will be utilized to fully repay $1.235 billion of floating rate mortgage debt. This existing debt was due in February 2026, and its repayment significantly reduces the company's exposure to interest rate fluctuations. This strategic move is projected to generate approximately $8.5 million in annual cash savings, or $0.13 per share, by reducing the outstanding principal balance and eliminating the need for interest rate caps on this specific debt.
This refinancing transaction is a pivotal step in ILPT's financial transformation and deleveraging efforts. It is expected to substantially improve the company's financial flexibility and interest coverage ratio. The shift from floating-rate to fixed-rate debt enhances balance sheet stability and predictability of interest expenses.
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