Cold storage and supply chain logistics firm Lineage has launched a EUR 700 million (USD 806 million) private placement after posting EBITDA growth in Q3 2025 and as it continues to expand its cold storage capacity in the U.S.
Lineage said the new private placement will be issued via its subsidiary Lineage Europe Finco, comprising senior notes due in 2031. The proceeds of the notes will be used to repay “amounts outstanding from time to time under its revolving credit facility,” the company said, and will also be used for general corporate and working capital needs of the company.
The new private placement comes after Lineage posted an increase in its total revenue and adjusted EBITDA in Q3 2025. Lineage’s total revenue increased to USD 1.377 billion (EUR 1.19 billion) in Q3 2025, up 3.1 percent from the same period of 2024. Its adjusted EBITDA also increased in Q3 2025, rising 2.4 percent compared to Q3 2024 to USD 341 million (EUR 295 million).
Adjusted funds from operations (AFFO) also increased, rising 6.3 percent to USD 221 million (EUR 191 million), the company said.
"We delivered adjusted EBITDA and AFFO growth in the third quarter, despite continued challenging market conditions," Lineage CEO Greg Lehmkuhl said in a release. "We saw seasonal improvements in occupancy with stable pricing trends in line with our expectations. Importantly, we remain focused on delighting our customers with exceptional service as we continue to work to optimize our warehouse efficiency.”
Lehmkuhl said that while the company has performed well in the face of tough market conditions, it is still reducing its net operating income (NOI) and EBITDA outlook for FY 2025 for two main reasons.
“First, tariff uncertainty is impacting import/export volumes,” Lehmkuhl said. “Second, while our total occupancy outlook for the fourth quarter is unchanged, we are seeing slightly lower occupancy in the U.S. compared to our international markets. Due to our reduced fourth quarter NOI outlook, we are moving our full-year adjusted EBITDA and AFFO per share guidance to the lower end of our previous ranges."
The company’s new FY 2025 guidance shifts its top-end adjusted EBITDA expectations downward slightly from USD 1.34 billion (EUR 1.16 billion) to USD 1.305 billion (EUR 1.13 billion).
Lineage is also continuing to expand its facilities within the U.S.
On 12 November, the company conducted a ribbon-cutting ceremony for an expansion at its Hobart, Indiana, U.S.A-based facility, which added 188,000 square feet of storage space and 58,000 pallet positions. The event marked the third such expansion made to the Hobart facility since 2008, the company said.
“This Hobart expansion represents an investment in innovation and supply chain solutions connectivity that helps our customers succeed,” Lineage Chief Integrated Solutions Officer Greg Bryan said. “As part of our Velocities program, this project shows how we’re working alongside our customers to provide cost-competitive and consistent delivery of less-than-truckload, temperature-controlled products to the marketplace."
Additionally, on 18 November, the company broke ground on a new automated facility in Hutchins, Texas, to serve the Dallas market. The new facility is expected to begin operations in late 2027 and will build on the company’s footprint in Texas where it already operates 18 facilities offering temperature-controlled warehousing and blast freezing.
“Dallas has long been a key market for Lineage, serving as a critical connecting point between food producers and the global food supply chain,” Lineage Chief Commercial Officer Tim Smith said. “The groundbreaking of our newest automated facility underscores our commitment to improving and expanding capabilities for our customers, utilizing advanced technologies to reimagine how the cold chain operates and feeds the world.”
Lineage did not share the size of the new facility.
