BRIXMOR PROPERTY GROUP PRICES OFFERING OF SENIOR NOTES

Rhea-AI Summary

Brixmor Property Group (NYSE: BRX) announced that its operating partnership has priced an offering of $400 million in Senior Notes due 2032. The notes will be issued at 99.831% of par value with a 5.200% coupon, with interest payable semi-annually on April 1 and October 1, starting October 1, 2025.

The notes will mature on April 1, 2032, and the offering is expected to close on March 4, 2025. The net proceeds will be used for general corporate purposes, including potential repayment of outstanding debt under its unsecured revolving credit facility. J.P. Morgan Securities, BMO Capital Markets, RBC Capital Markets, and U.S. Bancorp Investments are serving as joint book-running managers for the offering.

Positive

• New $400M debt financing secured
• Potential debt refinancing to manage credit facility exposure

Negative

• Additional long-term debt obligation at 5.200% interest rate
• Issued slightly below par value at 99.831%

Insights

Financial Analyst

Brixmor Property Group's $400 million senior notes offering represents a strategic debt management move with several key implications for investors. The 7-year notes carry a 5.200% coupon rate and are priced at a slight discount (99.831% of par), creating an effective yield slightly higher than the stated coupon.

This offering appears primarily aimed at liability management rather than funding new acquisitions or developments. By potentially using proceeds to repay revolving credit facility debt, Brixmor is likely converting variable-rate, shorter-term debt into fixed-rate, longer-term financing. This strategy locks in current rates for an extended period, providing greater certainty in the company's interest expense structure through 2032.

The pricing of these notes offers valuable insight into how the debt markets currently view Brixmor's credit quality. The 7-year maturity extends the company's debt ladder while avoiding significant near-term maturities that could create refinancing pressure. For a REIT with Brixmor's profile, this offering represents approximately 4.8% of its market capitalization, a manageable proportion that shouldn't significantly alter its overall leverage profile.

For investors, this transaction signals management's proactive approach to capital structure optimization while maintaining financial flexibility. The company is effectively balancing fixed and floating rate debt exposure while extending its maturity profile - both prudent strategies in the current interest rate environment.

NEW YORK, Feb. 27, 2025 /PRNewswire/ -- Brixmor Property Group Inc. (NYSE: BRX) ("Brixmor" or the "Company") announced today that its operating partnership, Brixmor Operating Partnership LP (the "Operating Partnership"), priced an offering of $400 million aggregate principal amount of 5.200% Senior Notes due 2032 (the "Notes"). The Notes will be issued at 99.831% of par value with a coupon of 5.200%. Interest on the Notes is payable semi-annually on April 1 and October 1 of each year, beginning October 1, 2025. The Notes will mature on April 1, 2032. The offering is expected to close on March 4, 2025, subject to the satisfaction of customary closing conditions.

The Operating Partnership intends to use the net proceeds from this offering for general corporate purposes, which may include repayment of outstanding indebtedness under its unsecured revolving credit facility. J.P. Morgan Securities LLC, BMO Capital Markets Corp., RBC Capital Markets, LLC and U.S. Bancorp Investments, Inc. are acting as joint book-running managers for the offering.

The Operating Partnership has filed an effective registration statement (including a prospectus supplement and accompanying base prospectus) with the Securities and Exchange Commission (the "SEC") relating to the offering to which this communication relates. Before making an investment in the Notes, potential investors should read the prospectus supplement, the accompanying prospectus and the other documents that the Company and the Operating Partnership have filed with the SEC for more complete information about us and the offering. Potential investors may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies may be obtained from: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by email at prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com, BMO Capital Markets Corp. by calling toll-free at 1-888-200-0266, RBC Capital Markets, LLC by calling (866) 375-6829 or U.S. Bancorp Investments, Inc., by telephone: 1-877-558-2607.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these Notes in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.  Any offer or sale of the Notes will be made only by means of a prospectus supplement relating to the offering of the Notes and the accompanying prospectus.

ABOUT BRIXMOR PROPERTY GROUP

Brixmor (NYSE: BRX) is a real estate investment trust (REIT) that owns and operates a high-quality, national portfolio of open-air shopping centers. Its 363 retail centers comprise approximately 64 million square feet of prime retail space in established trade areas.  The Company strives to own and operate shopping centers that reflect Brixmor's vision "to be the center of the communities we serve" and are home to a diverse mix of thriving national, regional and local retailers.  Brixmor is a proud real estate partner to over 5,000 retailers, including The TJX Companies, The Kroger Co., Publix Super Markets and Ross Stores.

Brixmor announces material information to its investors in SEC filings and press releases and on public conference calls, webcasts and the "Investors" page of its website at https://www.brixmor.com. The Company also uses social media to communicate with its investors and the public, and the information Brixmor posts on social media may be deemed material information. Therefore, Brixmor encourages investors and others interested in the Company to review the information that it posts on its website and on its social media channels.

SAFE HARBOR LANGUAGE

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, and other non-historical statements. You can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates," or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include, but are not limited to, those described under the sections entitled "Forward-Looking Statements" and "Risk Factors" in our Form 10-K for the year ended December 31, 2024, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC's website at https://www.sec.gov. These factors include (1) changes in national, regional, and local economies, due to global events such as international military conflicts, international trade disputes, a foreign debt crisis, foreign currency volatility, or due to domestic issues, such as government policies and regulations, tariffs, energy prices, market dynamics, general economic contractions, rising interest rates, inflation, unemployment, or limited growth in consumer income or spending; (2) local real estate market conditions, including an oversupply of space in, or a reduction in demand for, properties similar to those in our property portfolio; (3) competition from other available properties and e-commerce; (4) disruption and/or consolidation in the retail sector, the financial stability of our tenants, and the overall financial condition of large retailing companies, including their ability to pay rent and/or expense reimbursements that are due to us; (5) in the case of percentage rents, the sales volumes of our tenants; (6) increases in property operating expenses, including common area expenses, utilities, insurance, and real estate taxes, which are relatively inflexible and generally do not decrease if revenue or occupancy decrease; (7) increases in the costs to repair, renovate, and re-lease space; (8) earthquakes, wildfires, tornadoes, hurricanes, damage from rising sea levels due to climate change, other natural disasters, epidemics and/or pandemics, civil unrest, terrorist acts, or acts of war, any of which may result in uninsured or underinsured losses; and (9) changes in laws and governmental regulations, including those governing usage, zoning, the environment, privacy, data security, intellectual property rights, and taxes. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in our periodic filings. The forward-looking statements speak only as of the date of this press release, and we expressly disclaim any obligation or undertaking to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except to the extent otherwise required by law.

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SOURCE Brixmor Property Group Inc.

FAQ

What are the key terms of Brixmor's (BRX) $400M Senior Notes offering?

The notes have a 5.200% coupon, mature on April 1, 2032, and will be issued at 99.831% of par value with semi-annual interest payments.

When will Brixmor's (BRX) new Senior Notes offering close?

The offering is expected to close on March 4, 2025, subject to customary closing conditions.

How will Brixmor (BRX) use the proceeds from the Senior Notes offering?

The proceeds will be used for general corporate purposes, including potential repayment of outstanding debt under its unsecured revolving credit facility.

Which banks are managing Brixmor's (BRX) Senior Notes offering?

J.P. Morgan Securities, BMO Capital Markets, RBC Capital Markets, and U.S. Bancorp Investments are acting as joint book-running managers.