Boston Properties Prices $850 Million Offering of Senior Unsecured Notes
November 17 2017 - 5:53PM
Business Wire
Boston Properties, Inc. (NYSE: BXP), a real estate investment
trust, announced today that its operating partnership, Boston
Properties Limited Partnership (“BPLP”), has agreed to sell $850
million of 3.200% senior unsecured notes due 2025 in an
underwritten public offering through BNY Mellon Capital
Markets, LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities
LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan
Stanley & Co. LLC, Jefferies LLC, Scotia Capital (USA) Inc., TD
Securities (USA) LLC and Wells Fargo Securities, LLC as joint
book-running managers. The notes were priced at 99.757% of the
principal amount to yield 3.238% to maturity. The notes will mature
on January 15, 2025, unless earlier redeemed. The offering is
expected to close on December 4, 2017, subject to the satisfaction
of customary closing conditions.
The estimated net proceeds from this offering are expected to be
approximately $841.2 million. BPLP intends to use the net proceeds
from the sale of the notes for the repayment of debt, including
funding the redemption of the $850 million aggregate principal
amount of its 3.700% senior notes due 2018 that are outstanding
(the “2018 Notes”), or other general business purposes, which may
include acquisitions, development projects or other investment
opportunities. Pending such uses, BPLP may invest the net proceeds
in short-term, interest-bearing, investment-grade securities. In
connection with the redemption of the 2018 Notes, BPLP expects that
it will record a loss from early extinguishment of debt in the
fourth quarter of 2017. Neither this offering nor the impact of the
redemption of the 2018 Notes was previously reflected in Boston
Properties’ earnings guidance for 2017.
BPLP has filed a registration statement (including a prospectus
and a preliminary prospectus supplement) with the Securities and
Exchange Commission for the offering to which this communication
relates. Before you invest, you should read the prospectus and the
preliminary prospectus supplement in that registration statement
and other documents BPLP has filed with the Securities and Exchange
Commission for more complete information about BPLP and this
offering. You may obtain these documents for free by visiting EDGAR
on the SEC website at www.sec.gov. Alternatively, you may obtain a
copy of the prospectus and related prospectus supplement from BNY
Mellon Capital Markets, LLC at Attention: Debt Capital Markets, 101
Barclay St., 3W, New York, New York 10286, or by calling (800)
269-6864; Deutsche Bank Securities Inc. at Attention: Prospectus
Group, 60 Wall Street, New York, NY 10005-2836, or by calling toll
free at (800) 503-4611 or by emailing prospectus.CPDG@db.com; J.P.
Morgan Securities LLC, 383 Madison Avenue, New York, New York
10179, Attention: High Grade Syndicate Desk, 3rd floor, or by
calling (212) 834-4533; Merrill Lynch, Pierce, Fenner & Smith
Incorporated, 200 North College Street, NC1-004-03-43, Charlotte,
NC 28255-0001, Attention: Prospectus Department, or by calling
toll-free (800) 294-1322 or by email at
dg.prospectus_requests@baml.com; and Morgan Stanley & Co. LLC,
180 Varick Street, 2nd Floor, New York, New York 10014, Attention:
Prospectus Department, or by calling (866) 718-1649 or by email at
prospectus@morganstanley.com.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities nor shall there be
any sale of these securities in any state in which such an offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state.
Boston Properties is a fully integrated real estate investment
trust that develops, redevelops, acquires, manages, operates and
owns a diverse portfolio of primarily Class A office space totaling
49.8 million square feet and consisting of 166 office properties
(including seven properties under construction), five retail
properties, five residential properties (including three properties
under construction) and one hotel. The Company is one of the
largest owners and developers of Class A office properties in the
United States, concentrated in five markets - Boston, Los Angeles,
New York, San Francisco and Washington, DC.
This press release contains forward-looking statements within
the meaning of the Federal securities laws. You can identify these
statements by our use of the words “will,” “expects,” “intends” and
similar expressions that do not relate to historical matters. You
should exercise caution in interpreting and relying on
forward-looking statements because they involve known and unknown
risks, uncertainties and other factors which are, in some cases,
beyond Boston Properties’ control and could materially affect
actual results, performance or achievements. These factors include,
without limitation, Boston Properties’ ability to satisfy the
closing conditions to the pending transaction described above,
potential changes in interest rates prior to the redemption of the
2018 Notes that could increase or decrease the loss from early
extinguishment of debt incurred in connection with the redemption
of the 2018 Notes and other risks and uncertainties detailed from
time to time in Boston Properties’ filings with the SEC. Boston
Properties does not undertake a duty to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20171117005860/en/
Boston Properties, Inc.Mike LaBelle, 617-236-3352Executive Vice
President, Chief Financial OfficerorArista Joyner,
617-236-3343Investor Relations Manager
Boston Properties (NYSE:BXP)
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