BOSTON–(BUSINESS WIRE)–Boston Properties, Inc. (NYSE: BXP), the largest publicly-traded developer, owner and manager of Class A office properties in the United States, announced today the redemption price for the $700.0 million in aggregate principal amount of 5.625% Senior Notes due 2020 (the “Notes”) issued by its operating partnership, Boston Properties Limited Partnership.
The Notes will be redeemed in full on September 18, 2019 (the “Redemption Date”), and the redemption price for the Notes will be approximately $740.7 million. The redemption price includes approximately $13.5 million of accrued and unpaid interest to, but not including, the Redemption Date. Excluding the accrued and unpaid interest, the redemption price is approximately 103.90% of the principal amount being redeemed. The redemption is being partially funded by the net proceeds from the offering in August 2019 of $700.0 million of 2.900% Senior Notes due 2030 (the “Offering”).
As a result of the early redemption of the Notes, Boston Properties expects to record a loss from early extinguishment of debt of approximately $28.0 million, or approximately $0.16 per diluted share, in the third quarter of 2019. This amount includes approximately $0.8 million of unamortized financing and other costs. In addition, the Company estimates the refinancing will reduce full year 2019 diluted EPS and diluted FFO per share by approximately $0.13 per share, reflecting the net impact of the loss on early extinguishment of debt, interest savings associated with the refinancing and interest earned on the net proceeds from the Offering pending the redemption. Neither the Offering nor the impact of the redemption of the Notes was reflected in Boston Properties’ earnings guidance for the third quarter or full year 2019, which was released on July 30, 2019.
Boston Properties (NYSE: BXP) is the largest publicly-held developer and owner of Class A office properties in the United States, concentrated in five markets – Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. The Company’s portfolio totals 50.9 million square feet and 193 properties, including 12 properties under construction.
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, the Company’s ability to satisfy the closing conditions to the pending redemption 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.
AT THE COMPANY
Executive Vice President
Chief Financial Officer and Treasurer
Vice President, Investor Relations