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BXP Prices $850 Million Offering of Senior Unsecured Notes

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BXP, the largest publicly traded developer and manager of premier workplaces in the US, has announced that its operating partnership, BPLP, will sell $850 million of 5.750% senior unsecured notes due 2035. The notes were priced at 99.961% of the principal amount, yielding 5.756% to maturity. The offering is expected to close on August 26, 2024, with estimated net proceeds of $841.9 million.

BPLP intends to use the proceeds to repay debt, potentially including the redemption of $850 million in 3.200% senior notes due 2025. This offering is expected to reduce BXP's third quarter and full year 2024 earnings per share by approximately $0.005 and $0.02, respectively, due to increased net interest expense.

BXP, il maggiore sviluppatore e gestore di luoghi di lavoro di prestigio negli Stati Uniti quotato in borsa, ha annunciato che la sua partnership operativa, BPLP, venderà 850 milioni di dollari di note senior non garantite con scadenza nel 2035 al tasso del 5,750%. Le note sono state prezzate al 99,961% dell'importo nominale, con un rendimento del 5,756% fino a scadenza. Si prevede che l'offerta si chiuda il 26 agosto 2024, con un ricavo netto stimato di 841,9 milioni di dollari.

BPLP intende utilizzare il ricavato per ripagare debiti, potenzialmente inclusa la riduzione di 850 milioni di dollari in note senior al 3,200% in scadenza nel 2025. Si prevede che questa offerta ridurrà gli utili per azione di BXP nel terzo trimestre e per l'intero anno 2024 di circa 0,005 dollari e 0,02 dollari, rispettivamente, a causa dell'aumento delle spese per interessi netti.

BXP, el mayor desarrollador y gestor de lugares de trabajo de primer nivel en EE. UU. que cotiza en bolsa, ha anunciado que su sociedad operativa, BPLP, venderá 850 millones de dólares en notas senior no garantizadas con un interés del 5.750% que vencerán en 2035. Las notas se valoraron al 99.961% del monto nominal, con un rendimiento del 5.756% hasta el vencimiento. Se espera que la oferta cierre el 26 de agosto de 2024, con un ingreso neto estimado de 841.9 millones de dólares.

BPLP tiene la intención de usar los ingresos para pagar deudas, posiblemente incluyendo la redención de 850 millones de dólares en notas senior al 3.200% que vencen en 2025. Se espera que esta oferta reduzca las ganancias por acción de BXP en el tercer trimestre y en el año completo de 2024 en aproximadamente 0.005 dólares y 0.02 dólares, respectivamente, debido al aumento de los gastos por intereses netos.

BXP는 미국에서 최고의 직장 공간을 개발하고 관리하는 가장 큰 상장 회사로, 운영 파트너십인 BPLP가 2035년 만기 5.750% 일반 사채 8억 5천만 달러를 판매할 것임을 발표했습니다. 이 사채는 원금의 99.961%에 가격이 책정되었으며, 만기 때 5.756%의 수익률을 제공합니다. 이번 공모는 2024년 8월 26일에 마감될 것으로 예상되며, 추정 순수익은 8억 4천 1백 90만 달러입니다.

BPLP는 수익금으로 부채를 상환할 계획이며, 이는 2025년 만기인 3.200% 일반 사채 8억 5천만 달러의 상환을 포함할 수 있습니다. 이 공모로 인해 BXP의 2024년 3분기와 전체 연도 주당순이익은 각각 약 0.005달러와 0.02달러 감소할 것으로 예상되며, 이는 순이자비용 증가로 인해 발생합니다.

BXP, le plus grand développeur et gestionnaire d'espaces de travail de premier plan aux États-Unis cotée en bourse, a annoncé que son partenariat opérationnel, BPLP, vendra 850 millions de dollars d'obligations senior non garanties à 5,750% arrivant à échéance en 2035. Les obligations ont été évaluées à 99,961% du montant nominal, offrant un rendement de 5,756% jusqu'à l'échéance. L'offre devrait se clôturer le 26 août 2024, avec des produits nets estimés à 841,9 millions de dollars.

BPLP prévoit d'utiliser les recettes pour rembourser des dettes, pouvant éventuellement inclure le rachat de 850 millions de dollars d'obligations senior à 3,200% arrivant à échéance en 2025. Il est prévu que cette offre réduise les bénéfices par action de BXP pour le troisième trimestre et l'année entière 2024 d'environ 0,005 dollar et 0,02 dollar, respectivement, en raison d'une augmentation des charges d'intérêt nettes.

BXP, der größte börsennotierte Entwickler und Betreiber von erstklassigen Arbeitsplätzen in den USA, hat angekündigt, dass seine Betriebspartnerschaft BPLP 850 Millionen Dollar an 5,750% nicht besicherten Anleihen mit Fälligkeit 2035 verkaufen wird. Die Anleihen wurden zu 99,961% des Nennbetrags bepreist und bieten eine Rendite von 5,756% bis zur Fälligkeit. Der Abschluss des Angebotes wird für den 26. August 2024 erwartet, mit geschätzten Nettoverlösen von 841,9 Millionen Dollar.

BPLP beabsichtigt, die Erlöse zur Rückzahlung von Schulden zu verwenden, möglicherweise einschließlich der Rücknahme von 850 Millionen Dollar an 3,200% nicht besicherten Anleihen mit Fälligkeit 2025. Es wird erwartet, dass dieses Angebot die Ergebnisse pro Aktie von BXP im dritten Quartal und für das gesamte Jahr 2024 um etwa 0,005 Dollar bzw. 0,02 Dollar verringert, aufgrund gestiegener Nettzinsaufwendungen.

Positive
  • Successful pricing of $850 million in senior unsecured notes
  • Notes priced at 99.961% of principal amount, yielding 5.756% to maturity
  • Estimated net proceeds of $841.9 million from the offering
Negative
  • Offering expected to reduce Q3 and full year 2024 EPS by $0.005 and $0.02 respectively
  • Increased net interest expense associated with the offering

Insights

BXP's $850 million senior unsecured notes offering is a strategic move to refinance existing debt. The new notes, priced at 99.961% of face value with a 5.75% coupon, effectively replace the maturing 3.2% notes due in 2025. This proactive refinancing, while increasing interest expenses, mitigates near-term refinancing risk in a higher rate environment.

The estimated $0.02 per share impact on 2024 FFO is relatively minor, considering BXP's scale. However, investors should note the increased interest expense, which may slightly pressure margins. The successful pricing of this offering demonstrates BXP's continued access to capital markets, a positive sign for a REIT in the current economic climate.

This refinancing reflects the broader challenges facing the commercial real estate sector, particularly office REITs. With interest rates higher than in recent years, BXP is proactively managing its debt profile, albeit at a higher cost. The 5.756% yield to maturity on the new notes, compared to the 3.2% on the notes being replaced, illustrates the increased cost of capital for REITs.

Investors should consider this transaction in the context of BXP's overall portfolio quality and market positioning. While the higher interest expense is a headwind, BXP's focus on premier workplaces in top-tier markets may provide some insulation against broader office market challenges. The company's ability to execute this offering suggests continued investor confidence in its long-term prospects.

BOSTON--(BUSINESS WIRE)-- BXP, Inc. (NYSE: BXP) (“BXP”), the largest publicly traded developer, owner and manager of premier workplaces in the United States, announced today that its operating partnership, Boston Properties Limited Partnership (“BPLP”), has agreed to sell $850.0 million of 5.750% senior unsecured notes due 2035 in an underwritten public offering through J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, PNC Capital Markets LLC, TD Securities (USA) LLC, Truist Securities, Inc. and Wells Fargo Securities, LLC, as joint book-running managers. The notes were priced at 99.961% of the principal amount to yield 5.756% to maturity. The notes will mature on January 15, 2035, unless earlier redeemed. The offering is expected to close on August 26, 2024, subject to the satisfaction of customary closing conditions.

The estimated net proceeds from this offering are expected to be approximately $841.9 million. BPLP intends to use the net proceeds from the sale of the notes for the repayment of debt, which may include funding all or a portion of the redemption of the $850.0 million aggregate principal amount of BPLP’s 3.200% senior notes due 2025 that are scheduled to mature on January 15, 2025 (the “2025 Notes”). Pending such use, BPLP may invest the net proceeds in short-term, interest-bearing deposit accounts.

The impact of this offering was not previously reflected in BXP’s earnings guidance for third quarter and full year 2024. BXP estimates the offering will reduce third quarter and full year 2024 (1) net income attributable to common shareholders (EPS) by approximately $0.005 per share and $0.02 per share, respectively, and (2) diluted funds from operations (FFO) per share by approximately $0.005 per share and $0.02 per share, respectively, due to increased net interest expense associated with the offering.

BPLP has filed a registration statement (including a prospectus and a preliminary prospectus supplement) with the Securities and Exchange Commission (the “SEC”) for the offering to which this communication relates. Before you invest, you should read the prospectus and the preliminary prospectus supplement in that registration statement and other documents BPLP has filed with the SEC for more complete information about BPLP and this offering. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, you may obtain a copy of the prospectus and related prospectus supplement from J.P. Morgan Securities LLC, 383 Madison Avenue New York, New York 10179, Attention: Investment Grade Syndicate Desk, Telephone: (212) 834-4533; Morgan Stanley & Co. LLC, 1585 Broadway, 29th Floor, New York, New York 10036, toll-free at 1-866-718-1649; TD Securities (USA) LLC, 1 Vanderbilt Avenue, New York, New York 10017, toll free at 1-855-495-9846; PNC Capital Markets LLC, 300 Fifth Ave. 10th Floor, Pittsburgh, PA 15222, or toll free at 855-881-0697 or email: pnccmprospectus@pnc.com; Truist Securities, Inc., 303 Peachtree Street, Atlanta, GA 30308 Attn: Prospectus Dept; Telephone (800) 685-4786; TruistSecurities.prospectus@Truist.com; and Wells Fargo Securities, LLC, Attention: WFS Customer Service, 608 2nd Avenue South, Suite 1000, Minneapolis, MN 55402, at 800-645-3751 or email: wfscustomerservice@wellsfargo.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be any sale of these securities in any state in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

BXP, Inc. (NYSE: BXP) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six markets – Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP has delivered places that power progress for our clients and communities for more than 50 years. BXP is a fully integrated real estate company, organized as a real estate investment trust (REIT). As of June 30, 2024, BXP’s portfolio, including properties owned by unconsolidated joint ventures, totaled 53.5 million square feet and 186 properties, including 10 properties under construction/redevelopment.

This press release contains forward-looking statements within the meaning of the Federal securities laws. You can identify these statements by our use of the words “will,” “expects,” “intends,” “estimates,” “guidance” and similar expressions that do not relate to historical matters. These statements are based on our current plans, expectations, projections and assumptions about future events. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, trends, uncertainties and other factors which are, in some cases, beyond BXP’s control and could materially affect actual results, performance or achievements. These factors include, without limitation, BXP’s ability to satisfy the closing conditions to the pending transaction described above, as well as other risks and uncertainties detailed from time to time in BXP’s filings with the SEC. BXP does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

AT BXP

Mike LaBelle

Executive Vice President

Chief Financial Officer and Treasurer

mlabelle@bxp.com



Helen Han

Vice President, Investor Relations

hhan@bxp.com

Source: BXP, Inc.

FAQ

What is the size and interest rate of BXP's new senior unsecured notes offering?

BXP's operating partnership, BPLP, is offering $850 million of 5.750% senior unsecured notes due 2035.

When is the expected closing date for BXP's notes offering?

The notes offering is expected to close on August 26, 2024, subject to customary closing conditions.

How does BXP plan to use the proceeds from the notes offering?

BXP intends to use the net proceeds to repay debt, potentially including the redemption of $850 million in 3.200% senior notes due 2025.

What is the expected impact of this offering on BXP's 2024 earnings?

BXP estimates the offering will reduce its third quarter and full year 2024 EPS by approximately $0.005 and $0.02 per share, respectively, due to increased net interest expense.

BXP, Inc.

NYSE:BXP

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