PLYMOUTH MEETING, PA-Brandywine Realty Trust has entered into an agreement to sell $850 million of senior unsecured notes. The settlement is scheduled for Tuesday, March 28. The REIT expects to use the net proceeds to fully repay borrowings from its $750-million term loan agreement and repay a portion of borrowings from its revolving credit facility.
Brandywine Operating Partnership LP, the company's operating partnership, will sell the notes. They consist of $300 million of floating rate notes due April 1, 2009 bearing interest at an annual floating rate equal to three months Libor plus 0.45%; $300 million of 5.75% notes dues April 1, 2012, and $250 million of 6% notes due April 1, 2016.
Interest on the 2009 notes will be payable quarterly, and interest on the 2012 and 2016 notes will be payable semi-annually, beginning this year. All of the securities in this offering are rated Baa3 by Moody's and BBB- by Standard & Poor's and Fitch.
Joint book-running managers for the offering are JPMorgan, Wachovia Securities and Merrill Lynch & Co. RBS Greenwich Capital and Well Fargo Securities are senior co-managers. Co-managers are BNY Capital Markets Inc., Commerzbank Corporates & Markets, Piper Jaffray, PNC Capital Markets LLC and SunTrust Capital Markets.
Brandywine obtained a $600-million revolving line of credit in late December 2005, just prior to the close of its Jan. 6, $3.3-billion acquisition of Prentiss Properties Trust. In December the REIT also sold $300 million in senior secured notes to help fund a portion of the approximately $2.2-billion cash component of the Prentiss transaction.
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