IRM · 10-Q · 2026Q3 · Full report
Interest Rate and Refinancing Exposure
IRON MOUNTAIN INC · 2026-11-05 · Importance 58 · Surprise 56 · No source text
Iron Mountain uses interest rate swaps designated as cash flow hedges to limit exposure to interest-rate changes on part of its floating-rate debt. Swap notional outstanding declined to approximately $770.0 million at September 30, 2026 from $1,349.0 million at December 31, 2025, a decrease of approximately 42.9%. The swaps mature from February 2027 through June 2029 and exchange variable payments based on one-month SOFR for fixed-rate payments.
Key facts
- On January 9, 2026, Iron Mountain subsidiaries entered into Virginia 3 term loans with original principal of $433.0 million, maturing January 9, 2031, at a weighted average interest rate of 6.3%. source
- On June 26, 2026, Iron Mountain completed a private offering of $1,500.0 million of notes due January 15, 2035, bearing a contractual interest rate of 6.25%. source
- Virginia 9 term loans bear interest at SOFR plus 3.00%; the facility has a maximum aggregate outstanding term-loan amount of $298.0 million and matures June 9, 2029, with two one-year extension options. source
- Nine-month 2026 net interest expense increased $54.2 million to $663.8 million from $609.5 million, primarily due to higher average debt outstanding. source
- As of September 30, 2026, Iron Mountain had $138.6 million outstanding on Virginia 9 term loans and the applicable interest rate was 6.9%. source
- Iron Mountain had approximately $770.0 million in interest rate swap notional value outstanding as of September 30, 2026, compared with $1,349.0 million as of December 31, 2025. source
- Iron Mountain's weighted average interest rate, including fees on outstanding letters of credit, was 5.7% at September 30, 2026, compared with 5.6% at September 30, 2025. source
- Iron Mountain may not generate sufficient operating cash flow or obtain future financing on acceptable terms or in sufficient amounts to service or refinance indebtedness or make necessary capital expenditures. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | realized | -6.7% | On June 26, 2026, Iron Mountain completed a private offering of $1,500.0 million of notes due January 15, 2035, bearing a contractual… |
| net_income | negative | committed | -4.0% | On June 26, 2026, Iron Mountain completed a private offering of $1,500.0 million of notes due January 15, 2035, bearing a contractual… |
| liability | negative | realized | -1.9% | On January 9, 2026, Iron Mountain subsidiaries entered into Virginia 3 term loans with original principal of $433.0 million, maturing… |
| cash | positive | realized | +1.9% | On January 9, 2026, Iron Mountain subsidiaries entered into Virginia 3 term loans with original principal of $433.0 million, maturing… |
| net_income | negative | committed | -1.2% | On January 9, 2026, Iron Mountain subsidiaries entered into Virginia 3 term loans with original principal of $433.0 million, maturing… |