LXP Industrial Trust Announces Pricing of Cash Tender Offer for Up to $150,000,000 of Outstanding 6.750% Notes due 2028

Rhea-AI Summary

LXP (NYSE: LXP) announced the pricing and results of its cash tender offer to purchase up to $150,000,000 aggregate purchase price of its 6.750% Notes due 2028. The Total Consideration for notes validly tendered at or before the early deadline was $1,076.36 per $1,000, inclusive of an $30.00 early tender premium and calculated using a 50 bps fixed spread to a 3.375% U.S. Treasury due 9/15/2028 (reference yield 3.511%).

Because early tenders exceeded the Tender Cap, the company applied a proration rate of approximately 75.3% and will accept $140,000,000 aggregate principal amount for settlement expected on October 20, 2025.

Positive

• $140,000,000 principal accepted for purchase
• Total Consideration of $1,076.36 per $1,000 (includes $30 early premium)
• Proration applied to fully subscribe the Offer within the $150,000,000 Tender Cap

Negative

• Offer oversubscribed, causing holder proration at approximately 75.3%
• Company limits aggregate purchase to $150,000,000, so some tendered notes were not accepted

Insights

Capital Markets Strategist

LXP completed a prorated cash tender reducing 2028 debt by $140,000,000, at a meaningful premium.

The Company offered to repurchase up to $150,000,000 of its 6.750% Notes due 2028 and will accept $140,000,000 in principal under a ~75.3% proration. The accepted Total Consideration of $1,076.36 per $1,000 implies a cash outlay above par and includes an early tender premium of $30.00.

This transaction reduces outstanding 2028 principal from $300,000,000 to $160,000,000 if settled as expected on Oct 20, 2025. The business effect is straightforward: lower future interest exposure on the retired principal and a one‑time cash cost today. The immediate risk is use of cash or liquidity to fund the purchase; the filing notes accrued interest and fees are additional cash items.

Monitor three concrete items over the near term: confirmation of settlement on Oct 20, 2025, the Company’s post‑settlement liquidity disclosure, and any statement about refinancing or cash sources to fund the purchase. These items will clarify whether the repurchase strengthens the balance sheet or stresses short‑term liquidity.

WEST PALM BEACH, FL., Oct. 16, 2025 (GLOBE NEWSWIRE) -- LXP Industrial Trust (NYSE: LXP) (the “Company”), a real estate investment trust (REIT) focused on Class A warehouse and distribution real estate investments, announced today the consideration payable in connection with the previously announced tender offer (the “Offer”) to purchase for cash an amount of its 6.750% Notes due 2028 (the “Notes”) with an aggregate purchase price up to $150,000,000 (excluding accrued and unpaid interest, which also will be paid to, but excluding, the applicable settlement date and excluding fees and expenses related to the Offer) (the “Tender Cap”) as described in the table below.

Title of Security

CUSIP Number

Principal Amount Outstanding

Tender Cap (Purchase Price)

Reference U.S. Treasury Security (1)

Reference Yield

Fixed Spread (basis points)

Early Tender Premium (per $1,000) (2)

Total Consideration (per $1,000) (2)

6.750% Notes due 2028

529043 AF8

$300,000,000

$150,000,000

3.375% UST due 9/15/2028

3.511%

50 bps

$30.00

$1,076.36

(1) In the above table, “UST” denotes a U.S. Treasury Security.
(2) The Total Consideration (as defined below) for Notes validly tendered (and not subsequently validly withdrawn) prior to or at the Early Tender Deadline (as defined below) and accepted for purchase is calculated using the Fixed Spread (as specified above) and is inclusive of the Early Tender Premium (as defined below). In addition, holders whose Notes are accepted will also receive Accrued Interest (as defined in the Offer to Purchase) on such Notes.

The Offer was made on the terms and conditions set forth in the offer to purchase, dated October 1, 2025 (the “Offer to Purchase”). The Offer will expire at 5:00 p.m., New York City time, on October 30, 2025, unless extended or earlier terminated by the Company in its sole discretion (the “Expiration Date”).

The total consideration (the “Total Consideration”) paid in the Offer for Notes that were validly tendered and not withdrawn at or prior to 5:00 p.m., New York City time, on October 15, 2025 (the "Early Tender Deadline") and accepted for purchase was determined in the manner described in the Offer to Purchase by reference to the fixed spread for the Notes specified in the table above plus the bid-side yield to maturity of the Reference U.S. Treasury Security specified in the table above and in the Offer to Purchase and includes an early tender premium of $30.00 per $1,000 principal amount of the Notes accepted for purchase (the “Early Tender Premium”).

Only holders of Notes who validly tendered and did not validly withdraw their Notes at or prior to the Early Tender Deadline are eligible to receive the Total Consideration for the Notes accepted for purchase. Holders of Notes will also receive accrued and unpaid interest on their Notes validly tendered and accepted for purchase from, and including, the most recent interest payment date for the Notes to, but excluding, the settlement date.

Withdrawal rights for the Notes expired at 5:00 p.m., New York City time, on October 15, 2025.

Because the aggregate purchase price of all of the Notes validly tendered and not validly withdrawn at or prior to the Early Tender Deadline exceeds the Tender Cap, the Company will not accept for purchase all of the Notes that have been validly tendered and not validly withdrawn and will only accept for purchase the principal amount of the Notes with an aggregate purchase price up to the Tender Cap. Accordingly, the Notes validly tendered and not validly withdrawn at or prior to the Early Tender Deadline will be subject to proration as described in the Offer to Purchase. The Company will use a proration rate of approximately 75.3% for the Notes and will accept $140,000,000 aggregate principal amount of the Notes for purchase as permitted by applicable law. The Company expects the settlement of all Notes accepted for purchase to occur on October 20, 2025, subject to all conditions to the Offer having been satisfied or waived.

Since the Offer for the Notes was fully subscribed as of the Early Tender Deadline, the Company will not accept for purchase any Notes validly tendered after the Early Tender Deadline.

INFORMATION RELATED TO THE OFFER

Wells Fargo Securities, LLC is serving as the dealer manager for the Offer. Investors with questions regarding the Offer may contact Wells Fargo Securities, LLC at (704) 410-4759 (collect) or (866) 309-6316 (toll-free) or liabilitymanagement@wellsfargo.com.

None of the Company or its board of trustees, the dealer manager, the tender agent or the trustee with respect to the Notes is making any recommendation as to whether holders should tender any Notes in response to the Offer, and neither the Company nor any such other person has authorized any person to make any such recommendation. Holders must make their own decision as to whether to tender any of their Notes, and, if so, the principal amount of Notes to tender.

This press release is for informational purposes only and is not an offer to buy, or the solicitation of an offer to sell, any of the Notes and the Offer does not constitute an offer to buy or the solicitation of an offer to sell the Notes in any jurisdiction or in any circumstances in which such offer or solicitation are unlawful.

The full details of the Offer are included in the Offer to Purchase. Holders are strongly encouraged to carefully read the Offer to Purchase, including materials incorporated by reference therein, because they contain important information. The Offer to Purchase may be obtained from the Information and Tender Agent, D.F. King & Co., Inc., free of charge, by calling (212) 931-0873 (collect, for banks and brokers) or (800) 848-3051 (toll-free, for all others), or by email to lxp@dfking.com.

ABOUT LXP INDUSTRIAL TRUST

LXP Industrial Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) focused on Class A warehouse and distribution investments in 12 target markets across the Sunbelt and Midwest. LXP seeks to expand its portfolio through acquisitions, development projects, and build-to-suit and sale/leaseback transactions. For more information or to follow LXP on social media, visit www.lxp.com.

This release contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under our control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance, or other expectations implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the headings “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in the Company’s periodic reports filed with the Securities and Exchange Commission, including risks related to: the Company’s ability to complete the Offer within expected time frames or at all, and other risks and uncertainties described in the Offer to Purchase; national, regional and local economic and political climates and changes in applicable governmental regulations and tax legislation; the outbreak of highly infectious or contagious diseases and natural disasters; authorization by our board of trustees of future dividend declarations; our ability to achieve our estimates of net income attributable to common shareholders and Adjusted Company FFO for the year ending December 31, 2025; the successful consummation of any lease, acquisition, development, build-to-suit, disposition, financing or other transaction, including achieving any estimated yields; the failure to continue to qualify as a real estate investment trust; changes in general business and economic conditions, including the impact of any legislation; competition; inflation and increases in operating costs; labor shortages; supply chain disruption and increases in real estate construction costs and raw materials costs and construction schedule delays; defaults or non-renewals of significant tenant leases; changes in financial markets and interest rates; changes in accessibility of debt and equity capital markets; future impairment charges; international trade disputes or the imposition of significant tariffs or other trade restrictions by the U.S. on imported goods that adversely impact trading volumes and risks related to our investments in our non-consolidated joint ventures.

Copies of the periodic reports the Company files with the Securities and Exchange Commission are available on our web site at www.lxp.com. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “estimates,” “projects”, “may,” “plans,” “predicts,” “will,” “will likely result,” “is optimistic,” “goal,” “objective” or similar expressions. Except as required by law, we undertake no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the occurrence of unanticipated events. Accordingly, there is no assurance that our expectations will be realized.

Contact:
Investor or Media Inquiries for LXP Industrial Trust:
Heather Gentry, Executive Vice President of Investor Relations
Phone: (212) 692-7200 E-mail: hgentry@lxp.com

FAQ

What did LXP announce for its 6.750% Notes due 2028 on October 16, 2025?

LXP priced a cash tender offer with Total Consideration of $1,076.36 per $1,000 and accepted $140,000,000 principal for purchase.

How much early tender premium did LXP pay for Notes (NYSE: LXP) in the October 2025 offer?

Holders who tendered by the Early Tender Deadline received an early tender premium of $30.00 per $1,000.

Why were tendered LXP 2028 notes prorated and what was the rate?

Early tenders exceeded the $150,000,000 Tender Cap, so the company used a proration rate of approximately 75.3%.

What principal amount will LXP actually purchase in the tender offer and when is settlement expected?

LXP will accept $140,000,000 aggregate principal amount for purchase, with settlement expected on October 20, 2025.

How was the Total Consideration for LXP's 6.750% Notes determined?

Total Consideration was calculated using a fixed spread of 50 bps to the reference U.S. Treasury (3.375% UST due 9/15/2028) plus the reference yield, inclusive of the early tender premium.

Who can investors contact with questions about LXP's tender offer (NYSE: LXP)?

Investors may contact the dealer manager Wells Fargo Securities at the provided phone numbers or email liabilitymanagement@wellsfargo.com.