COLD STORAGE: Lineage Logistics Raises $1.9 Billion in New Equity

Posted on 03/11/2021


Lineage Logistics, LLC represents the largest network of temperature-controlled warehouses globally, with more than 340 facilities offering over 2.1 billion cubic feet of capacity and spanning 15 countries across North America, Europe, Asia, Australia, New Zealand, and South America.

Lineage Logistics raised US$ 1.9 billion in equity from new and existing strategic partners. Participating investors include BentallGreenOak, D1 Capital Partners, Oxford Properties, CenterSquare Investment Management, MS Tactical Value and Conversant Capital, OP Trust, Cohen & Steers, among others.

In addition to this latest equity raise – which is the Company’s largest since its founding in 2008 and follows September’s $1.6 billion raise – Lineage also transformed its capital structure with a new $2.8 billion Revolving Credit Facility and Term Loan A. The new facility aligns closely with traditional REIT financings, has investment-grade pricing, and becomes unsecured upon compliance with investment-grade covenants. Additionally, the new facility enables Lineage’s growth worldwide by offering multicurrency lending across Lineage’s numerous jurisdictions. This transaction represents Lineage’s first sustainability-linked loan with three Environmental, Social, and Governance (ESG) initiatives.

Additionally, the new equity will be deployed, in part, to fund greenfield development and facility expansion projects in its North American, European and Asian-Pacific operating regions. Focusing on customer need and opportunity,

Lineage has recently completed or has pending construction in the following markets:

In the U.S.:
Charleston, South Carolina
Logan Township, New Jersey
New Orleans, Louisiana
Portsmouth, Virginia
Sioux Falls, South Dakota
Stevens Point, Wisconsin

International:
Aarhus (Denmark)
Gdansk (Poland)
Hanoi (Vietnam)
Heywood (United Kingdom)
Peterborough (United Kingdom)
Tauranga (New Zealand)

In addition to growth via greenfield development and facility expansion projects, Lineage continues its long history of acquiring best-in-class cold chain companies around the world. Other deals include:

Dick Cold Storage, including three locations in the Greater Columbus, OH area
A new strategic warehouse in Lyndhurst, VA
Great Lakes Cold Storage, including two locations in Solon, OH and Cranberry Township, PA
Win Chill Cold Storage, including one location in Sioux Falls, South Dakota
Joliet Cold Storage, including two locations in Bolingbrook, IL and Joliet, IL
A number of the former owners from these companies, in addition to those already announced, chose to become investors in Lineage, rolling a part of their companies’ sale proceeds into Lineage equity.

In connection with the equity raise, the Company also announced a new Board Member, BentallGreenOak Senior Managing Partner and Co-Founder, John Carrafiell, who brings with him 33-years of real estate and capital markets experience. With $53 billion in Assets Under Management, BentallGreenOak is a leading global real estate investment manager and advisor, and a globally recognized provider of real estate services.

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