BOSTON-Office REIT Boston Properties Inc. said Tuesday afternoon that its operating partnership, Boston Properties Limited Partnership, would sell $700 million of 3.800% senior unsecured notes. The notes will mature on Feb. 1, 2024, and are priced at 99.694% of the principal amount to yield 3.835% to maturity.
BXP said in a SEC filing that it expects net proceeds of about $691.9 million from the note sale, and the limited partnership intends to use the net proceeds for general business purposes, which may include investment opportunities and debt reduction. Pending such uses, BPLP may invest the net proceeds in short-term, interest-bearing securities, according to a release.
The underwritten public offering for the notes is expected to close on June 27. Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Inc. and Morgan Stanley & Co. LLC are serving as joint book-running managers.
Separately, BXP's board on Tuesday declared a regular quarterly cash dividend of $0.65 per share of common stock for the period April 1 through June 30, payable on July 31 to shareholders of record as of the close of business on June 28. The board also declared a regular quarterly cash dividend of $0.328125 per depositary share for the company's 5.25% Series B cumulative redeemable preferred stock.
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