Published on 11/2/2023 in the Prospect News Investment Grade Daily.
New Issue: LXP Industrial sells $300 million 6.75% five-year notes at 225 bps over Treasuries
By Wendy Van Sickle
Columbus, Ohio, Nov. 2 – LXP Industrial Trust priced $300 million of 6.75% five-year senior notes (Baa2/BBB-/BBB) on Thursday, according to an FWP filed with the Securities and Exchange Commission.
The notes priced at 99.423 to yield 6.888%, or Treasuries plus 225 basis points.
The bookrunners were Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, KeyBanc Capital Markets Inc., Regions Securities LLC, BofA Securities, Inc. and TD Securities (USA) LLC.
Proceeds will be used to pay down all $25 million outstanding as of Nov. 2 under the company’s revolving credit facility with any remaining proceeds for general corporate purposes, which may include debt repayment and funding of the development pipeline. The revolver bears interest at SOFR plus a margin ranging from 72.5 bps to 140 bps depending on LXP’s debt rating and matures on July 5, 2026, but can be extended to July 5, 2027.
LXP is a Maryland real estate investment trust focused on single-tenant warehouse/distribution real estate investments. Based in New York City, it was formerly known as Lexington Realty Trust.
| Issuer: | LXP Industrial Trust
|
| Amount: | $300 million
|
| Issue: | Senior notes
|
| Maturity: | Nov. 15, 2028
|
| Bookrunners: | Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, KeyBanc Capital Markets Inc., Regions Securities LLC, BofA Securities, Inc. and TD Securities (USA) LLC
|
| Co-managers: | Citizens Capital Markets, Inc. and Samuel A. Ramirez & Co., Inc.
|
| Trustee: | U.S. Bank Trust Co., NA
|
| Counsel to issuer: | Hogan Lovells US LLP and Venable, LLP (Maryland law)
|
| Counsel to underwriters: | Goodwin Procter LLP
|
| Coupon: | 6.75%
|
| Price: | 99.423
|
| Yield: | 6.888%
|
| Spread: | Treasuries plus 225 bps
|
| Call feature: | Make-whole call at Treasuries plus 35 bps until Oct. 15, 2028, thereafter at par
|
| Trade date: | Nov. 2
|
| Settlement date: | Nov. 13
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB-
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
| Cusip: | 529043AF8
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
