Innovative Industrial Properties Prices Upsized $402.5M Exchangeable Notes
Innovative Industrial Properties' operating partnership, IIP Operating Partnership, LP, priced an upsized private offering of $402.5 million in 6.000% exchangeable senior notes due 2029. This amount includes the full exercise of the initial purchasers' over-allotment option. The notes are exchangeable for cash, common stock, or a combination, with an initial exchange price of approximately $69.39 per share. The Operating Partnership plans to use $80.5 million of the net proceeds to repurchase 1,334,106 shares of the Company's common stock and the remainder for general corporate purposes. Additionally, the Company fully repaid its outstanding $282 million of 5.50% Senior Notes due 2026 on May 26, 2026.
Key Highlights
- IIP Operating Partnership priced an upsized private offering of $402.5 million aggregate principal amount of 6.000% exchangeable senior notes due 2029.
- The offering includes the full exercise of the initial purchasers' option to buy an additional $52.5 million in notes.
- Notes are exchangeable for cash, common stock, or a combination, with an initial exchange rate of 14.4113 shares per $1,000 principal amount.
- Initial exchange price is approximately $69.39 per share of common stock.
- The Operating Partnership will use $80.5 million of net proceeds to repurchase 1,334,106 shares of common stock.
- Remaining net proceeds will be used for working capital, general corporate purposes, and potential debt repayment or investments.
- The Company fully repaid $282 million of its 5.50% Senior Notes due 2026 on May 26, 2026.
Price Impact
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