Shares of Logistic Properties of the Americas (NYSE: LPA) experienced a remarkable increase of 98.58% in the recent trading session, nearly doubling to close at $28.00. Despite the absence of significant news, recent developments within the company may have catalyzed this surge.
Strategic Refinancing Initiatives
Refinancing $120 million of its mortgage loans connected to the Lima Sur Logistics Park in Peru and the La Verbena Logistics Park in Costa Rica was a noteworthy accomplishment for Logistic Properties of the Americas (LPA). By extending the loan maturity profile and lowering financing costs, this calculated action will improve the company’s financial flexibility and fortify its balance sheet.
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Part of LPA’s larger financial plan to encourage investment in in-demand real estate properties throughout its present and potential markets is this proactive liability management.
Detailed Loan Transactions
In a strategic financial maneuver, Logistic Properties secured a new $60 million, 15-year mortgage loan for the La Verbena Logistics Park with Banco BAC San José, S.A. (“BAC”). The loan features an interest rate of three-month SOFR plus 2.00% and a 20-year amortization profile.
The funds were utilized to repay the existing $48.05 million, 10-year mortgage loan with BAC, which carried an interest rate of three-month SOFR plus 3.78% and a 15-year amortization profile. The remaining proceeds from this new loan are intended for reinvestment in other properties within LPA’s portfolio and the development of new properties.
Additionally, Logistic Properties entered into a $60 million, 10-year mortgage loan for the Lima Sur Logistics Park with Banco BBVA Peru. At maturity, a 35% balloon payment is payable on this sustainability-linked loan, which is structured into two tranches. The fixed interest rate on Tranche A, valued at $48.7 million, is 8.40%, while the fixed interest rate on Tranche B, valued at $11.3 million, is 8.50%.
For both tranches, a 20 basis point discount is offered, given that the company satisfies specific sustainability criteria. The International Finance Corporation (“IFC”) loan amount was settled using the revenues from Tranche A, while the funds from Tranche B would be reinvested and utilized to expand LPA’s property platform.
