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PLYMOUTH MEETING, PA-Brandywine Realty Trust is offering $300 million of 5.625% senior unsecured notes due Dec. 15, 2010. Brandywine will use the proceeds to fund a portion of the approximately $2.2-billion cash component of its pending $3.3-billion acquisition of Dallas-based Prentiss Properties Trust.

Interest on the notes will be payable semiannually on June 15 and Dec. 15, beginning on June 15, 2006. Joint book running managers of the offering are JP Morgan Securities and Banc of America Securities LLC. Bear Stearns & Co. is senior co-manager and SG Americas Securities is co-manager. All the securities in the offering are rated Baa3 by Moody's and BBB by Standard & Poor's and Fitch.

Settlement of the offering is scheduled for Dec. 20. Special meetings of shareholders of both Brandywine and Prentiss take place simultaneously on Dec. 21.

Meanwhile, according to an SEC filing, Brandywine has entered into four separate employment agreements with Prentiss executives. Robert Wiberg, currently Prentiss' EVP, will serve as EVP and managing director of operations with Brandywine. Dan Cushing will be SVP and managing director, western region; Christopher Hipps will be EVP and managing director, southwest region, and Michael Cooper will be SVP, mid-Atlantic region. All of the agreements are for two-year terms.

During a joint Brandywine/Prentiss conference call in early October to announce the planned merger, the companies also announced that Michael V. Prentiss, chairman, and Thomas F. August, president and CEO of Prentiss, would join Brandywine's board of directors.

Instant Insights /

Brandywine Raises $300M as Merger With Prentiss Nears

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