Select Income REIT subsidiary Industrial Logistics Properties Trust, or ILPT, obtained a secured revolving credit facility with initial credit commitments of $750 million.
The company borrowed the entire $750 million available under the facility to repay a noninterest-bearing demand note, which ILPT had issued to Select Income in connection with its IPO.
Select Income used the proceeds of the repayment to settle amounts outstanding under its $750 million unsecured revolving credit facility and aims to use the balance of the funds to bankroll the redemption of its 2.85% senior notes due 2018 and for general corporate purposes.
The amounts drawn under the ILPT credit facility are available for general corporate purposes, including purchases.
The maturity date of the credit facility is March 29, 2018, which may be extended to Dec. 29, 2021, subject to the completion of an IPO with gross proceeds of at least $250 million, or a qualified IPO, and satisfaction of other conditions.
The company also has the option to extend the maturity date of the credit facility for two six-month periods.
The facility also comes with a feature under which the maximum borrowing availability may be increased to up to $1.5 billion.
Citibank NA serves as the administrative and collateral agent for the facility.