Company: IIPR
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001677576-25-000005
Chunk: 143

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 143
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HQ Credit Facility bears interest at a fixed annual rate of 13.5%, consisting of 12.0% payable in cash and 1.5% PIK, with interest payable quarterly. The IQHQ Credit Facility has an initial maturity on September 30, 2028, with a one-time extension option of up to 12 months, subject to the satisfaction of certain conditions and payment of a facility extension fee. All obligations under the IQHQ Credit Facility are unconditionally guaranteed by IQHQ and secured by a first priority pledge of  certain of IQHQ's assets. The Company is subject to a rate reduction penalty of up to 3.0% in the event it fails to make required purchases of IQHQ Preferred Stock under the Securities Purchase Agreement. The IQHQ Credit Facility includes customary representations, warranties, and covenants, as well as major decision rights requiring lender approval. IQHQ is required to prepay loans with proceeds from certain asset or equity sales and may voluntarily prepay or reduce commitments subject to specified conditions.The following table details the carrying value of our life science investments (in thousands):September 30, 2025Investment in IQHQ Preferred Stock$3,805 Investment in IQHQ Warrant1,195 Investment in IQHQ Credit Facility (1)100,240 Total$105,240 (1)Includes transaction costs of $0.2 million.

8. Debt

Exchangeable Senior NotesDuring the nine months ended September 30, 2024, we issued 28,408 shares of our common stock and paid $4.3 million in cash upon exchange by holders of $4.3 million principal amount of Exchangeable Senior Notes and paid off the remaining $0.1 million principal amount at maturity in February 2024, in accordance with terms of the indenture for the Exchangeable Senior Notes.The following table details our interest expense related to the Exchangeable Senior Notes which matured in February 2024 (in thousands):For the Three Months Ended September 30,For the Nine Months Ended September 30,2025202420252024Cash coupon$— $— $— $24 Amortization of issuance cost— — — 5 Capitalized interest— — — (1)Total interest expense$— $— $— $28 Notes due 2026In May 2021, our Operating Partnership issued $300.0 million aggregate principal amount of its 5