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RADNOR, PA-Brandywine Realty Trust’s operating partnership has begun a private offering of $300 million in exchangeable guaranteed notes due Oct. 15, 2026. Within 30 days, additional notes aggregating up to $45 million may be issued to initial purchasers to cover any over-allotments.

The notes are unsecured obligations of the operating partnership. According to a statement from Brandywine CEO Gerard Sweeney’s team, they will be fully and unconditionally guaranteed by the locally based REIT. Under SEC rules, the notes are available only to qualified institutional buyers. A buyer has the option of exchanging the notes into cash and, with the agreement of the operating partnership, into Brandywine common stock.

Brandywine expects to use a portion of the net proceeds to repurchase up to $60 million in shares of its common stock. It will also repay an unspecified portion of outstanding debt under its revolving credit facility. According to an SEC filing Aug. 9, Brandywine had $195 million of debt and $23.4 million of letters of credit outstanding on its credit facility at the second-quarter close. The weighted-average interest rate was 5.48% during this year, up from 4.06% for 2005.

Any remaining proceeds from the notes will be invested in government or other short term-rated securities pending the Jan. 2, 2007 redemption of the REIT’s $300-million floating-rate guaranteed notes due in 2009. Brandywine’s operating partnership issued the floating rate notes March 28.

Brandywine’s common stock closed yesterday at $32.80 a share, down nearly 1.3% for the day on the NYSE. The 52-week high of $34.01 a share was reached Sept. 20; the 52-week low of $25.88 a share occurred Nov. 4, 2005.

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