LXP Industrial Trust closed a $600 million senior unsecured revolving credit facility and refinanced a $250 million unsecured term loan on January 14, 2026, creating an $850 million credit package that replaces higher‑cost debt with lower‑interest, lower‑fee financing that matures in 2030 and 2029, respectively.
The new revolving facility carries an interest rate of SOFR plus 77.5 basis points, a 17 basis‑point reduction from the previous SOFR plus 95 basis‑point rate, and a facility fee of 15 basis points, down 5 basis points from the former 20 basis‑point fee. The term loan now carries SOFR plus 85 basis points, a 25 basis‑point cut from the prior SOFR plus 110 basis‑point rate, and includes two one‑year extension options. The combined effect is a measurable drop in annual interest expense and a lower cost of capital that supports the company’s leverage target of roughly five times adjusted EBITDA.
The refinancing extends LXP’s debt maturity profile and aligns with its balance‑sheet transformation strategy. The company has already repaid $140 million of 6.75 % senior notes in October 2025 and sold two vacant development projects for $175 million, proceeds that were used to reduce debt. The S&P Global Ratings revision to a positive outlook, citing leverage in the low‑5× area, underscores the market’s confidence in the company’s capital‑structure discipline.
Strategically, the new credit package provides the liquidity needed to pursue acquisitions, develop build‑to‑suit projects, and execute sale‑leaseback transactions in high‑growth U.S. logistics markets. By lowering borrowing costs and extending maturities, LXP can deploy capital more efficiently, accelerate portfolio expansion, and maintain a strong dividend policy while preserving financial flexibility.
CFO Nathan Brunner said the new facilities “extend our debt maturity profile and reduce our interest costs, further strengthening our balance sheet and increasing our financial flexibility.” He added that the move builds on the progress made in 2025, including the S&P rating upgrade and the company’s ongoing effort to keep leverage near five times adjusted EBITDA.
In Q3 2025, LXP reported net income of $34.6 million and adjusted company FFO of $46.7 million, up from $4.7 million and $46.7 million in Q3 2024, respectively. Revenue rose to $86.9 million from $85.6 million, reflecting steady demand in its core industrial logistics portfolio. The refinancing supports this growth trajectory by providing a lower‑cost, longer‑term funding base that can be leveraged for future expansion and capital‑raising activities.
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