Cannabis industry real estate investment trust Innovative Industrial Properties (IIP) said it upsized a previously announced private debt offering to raise $300 million.
The senior notes from IIP’s operating partnership carry an interest rate of 5.50% and mature on May 25, 2026. Interest is payable twice a year, on May 15 and Nov. 15.
The new debt ranks equally with other debt held by IIP’s operating partnership, including 3.75% exchangeable senior notes due in 2024, according to a news release from the San Diego-based company.
If control of IIP’s operating partnership changes, the partnership must offer to purchase the notes at 101% of the principal amount, plus accrued and unpaid interest.
The offering is expected to close on May 25.
“The operating partnership intends to use the net proceeds from this private offering to invest in specialized industrial real estate assets that support the regulated cannabis industry that are consistent with its investment strategy, and for general corporate purposes,” IIP noted in the release.
IIP undertakes real estate sale-leaseback deals with major U.S. cannabis companies, such as a recent deal to purchase and improve a Pennsylvania marijuana cultivation and processing facility.
Innovative Industrial Properties trades on the New York Stock Exchange as IIPR.
