Office Properties Income Trust Announces Waiver of Minimum Participation Condition and Extension of the Early Delivery Time for Previously Announced Private Exchange Offers
Office Properties Income Trust (OPI) has announced modifications to its private exchange offers for outstanding senior unsecured notes due 2026, 2027, and 2031. The key changes include:
1. Waiving the Minimum Participation Condition that required valid tender of at least $105 million in aggregate principal amount of 2026 notes
2. Extending the Early Delivery Time for holders to tender their Existing Notes to 5:00 p.m., New York City time, on March 10, 2025
The new notes being offered are 8.000% Senior Priority Guaranteed Unsecured Notes due 2030. The Expiration Time remains unchanged at March 10, 2025. The withdrawal deadline has already expired on February 28, 2025. The exchange offers are to Eligible Holders, including qualified institutional buyers, non-U.S. persons, and certain institutional accredited investors.
Office Properties Income Trust (OPI) ha annunciato modifiche alle sue offerte di scambio private per le obbligazioni senior non garantite in circolazione con scadenza nel 2026, 2027 e 2031. Le principali modifiche includono:
1. L'abrogazione della Condizione di Partecipazione Minima che richiedeva un'asta valida di almeno 105 milioni di dollari in valore nominale aggregato delle obbligazioni 2026.
2. L'estensione del Termine di Consegna Anticipata per i possessori di presentare le loro Obbligazioni Esistenti fino alle 17:00, ora di New York, del 10 marzo 2025.
Le nuove obbligazioni offerte sono Obbligazioni Senior Prioritarie Garantite Non Garantite all'8,000% con scadenza nel 2030. Il termine di scadenza rimane invariato al 10 marzo 2025. La scadenza per il ritiro è già scaduta il 28 febbraio 2025. Le offerte di scambio sono destinate ai Titolari Idonei, inclusi acquirenti istituzionali qualificati, persone non statunitensi e alcuni investitori istituzionali accreditati.
Office Properties Income Trust (OPI) ha anunciado modificaciones a sus ofertas de intercambio privadas para notas senior no garantizadas pendientes con vencimiento en 2026, 2027 y 2031. Los cambios clave incluyen:
1. La eliminación de la Condición de Participación Mínima que requería una licitación válida de al menos 105 millones de dólares en monto principal agregado de las notas de 2026.
2. La extensión del Tiempo de Entrega Anticipada para que los tenedores presenten sus Notas Existentes hasta las 5:00 p.m., hora de Nueva York, del 10 de marzo de 2025.
Las nuevas notas ofrecidas son Notas Senior Garantizadas No Garantizadas al 8.000% con vencimiento en 2030. El Tiempo de Expiración permanece sin cambios al 10 de marzo de 2025. La fecha límite de retiro ya ha expirado el 28 de febrero de 2025. Las ofertas de intercambio están dirigidas a los Tenedores Elegibles, incluidos compradores institucionales calificados, personas no estadounidenses y ciertos inversores institucionales acreditados.
오피스 프로퍼티 인컴 트러스트 (OPI)는 2026년, 2027년 및 2031년에 만료되는 미지급 선순위 무담보 채권에 대한 개인 교환 제안의 수정 사항을 발표했습니다. 주요 변경 사항은 다음과 같습니다:
1. 2026년 채권의 총 원금 1억 5천만 달러 이상에 대한 유효한 제안이 필요했던 최소 참여 조건을 면제합니다.
2. 기존 채권을 제출할 수 있는 조기 제출 시간을 2025년 3월 10일 오후 5시(뉴욕 시간)까지 연장합니다.
제공되는 새로운 채권은 2030년 만기 8.000% 선순위 보장 무담보 채권입니다. 만료 시간은 2025년 3월 10일로 변경되지 않습니다. 철회 마감일은 이미 2025년 2월 28일에 만료되었습니다. 교환 제안은 자격이 있는 기관 투자자, 비미국인 및 특정 기관 인증 투자자를 포함한 자격이 있는 보유자에게 제공됩니다.
Office Properties Income Trust (OPI) a annoncé des modifications à ses offres d'échange privées pour des obligations senior non garanties en circulation arrivant à échéance en 2026, 2027 et 2031. Les principaux changements incluent :
1. La suppression de la Condition de Participation Minimale qui exigeait une soumission valide d'au moins 105 millions de dollars en montant principal total des obligations 2026.
2. L'extension du Délai de Soumission Anticipée pour que les détenteurs soumettent leurs Obligations Existantes jusqu'à 17h00, heure de New York, le 10 mars 2025.
Les nouvelles obligations proposées sont des Obligations Senior Prioritaires Garanties Non Garanties à 8,000% arrivant à échéance en 2030. La date d'expiration reste inchangée au 10 mars 2025. La date limite de retrait a déjà expiré le 28 février 2025. Les offres d'échange sont destinées aux Détenteurs Éligibles, y compris les acheteurs institutionnels qualifiés, les personnes non américaines et certains investisseurs institutionnels accrédités.
Office Properties Income Trust (OPI) hat Änderungen an seinen privaten Umtauschangeboten für ausstehende unbesicherte vorrangige Anleihen mit Fälligkeiten 2026, 2027 und 2031 angekündigt. Die wichtigsten Änderungen umfassen:
1. Der Verzicht auf die Minimale Teilnahmebedingung, die eine gültige Angebotsabgabe von mindestens 105 Millionen Dollar an Gesamtnennbetrag der Anleihen 2026 erforderte.
2. Die Verlängerung der Frist für die frühzeitige Einreichung für Inhaber, um ihre bestehenden Anleihen bis 17:00 Uhr New Yorker Zeit am 10. März 2025 einzureichen.
Die neuen angebotenen Anleihen sind 8,000% vorrangige garantierte unbesicherte Anleihen mit Fälligkeit 2030. Die Ablaufzeit bleibt unverändert am 10. März 2025. Die Rücktrittsfrist ist bereits am 28. Februar 2025 abgelaufen. Die Umtauschangebote richten sich an berechtigte Inhaber, einschließlich qualifizierter institutioneller Käufer, Nicht-US-Personen und bestimmte institutionelle akkreditierte Investoren.
- Removal of $105M minimum participation condition provides more flexibility
- Extended Early Delivery Time gives investors more time to participate
- 8% interest rate on new notes offers attractive yield
- Exchange offers indicate potential debt restructuring concerns
- Withdrawal rights have expired, limiting investor flexibility
- New notes will have transfer restrictions due to non-registration
Insights
Office Properties Income Trust's waiver of the minimum participation condition for its exchange offers is a significant red flag for investors. This amendment effectively removes the requirement for at least
This development suggests bondholders may be reluctant to exchange their existing notes for the new 8.000% Senior Priority Guaranteed Unsecured Notes due 2030. The timing is particularly notable as the withdrawal deadline has already passed (February 28), meaning investors who previously tendered their notes are now locked in despite these changed terms.
The company appears to be pushing forward with its debt restructuring regardless of participation levels, which raises questions about the attractiveness of the exchange terms. The new "Senior Priority Guaranteed" designation likely offers additional security compared to existing unsecured notes, but evidently this hasn't been sufficient to drive adequate participation.
For context, OPI's current market capitalization of just
Investors should recognize that these amended terms create an information asymmetry between early participants (who can no longer withdraw) and potential new participants who can make decisions with knowledge of the waived conditions.
Tender Expiration Date of March 10, 2025 Remains Unchanged
Waiver of Minimum Participation Condition and Extension of Early Delivery Time
Under the terms of the Amended Exchange Offers, OPI is:
(i) waiving the condition requiring the valid tender of at least
(ii) extending the Early Delivery Time for holders to validly tender their Existing Notes to 5:00 p.m.,
Expiration Time of March 10 and Other Terms Unchanged
Except as described in this press release with respect to the waiver of the Minimum Participation Condition and the Amended Early Delivery Time, the terms and conditions of the Amended Exchange Offers described in the Offering Memorandum remain unchanged. The withdrawal deadline expired at 5:00 p.m.,
No Registration
The offer and sale of the New Notes and related guarantees will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and the New Notes and related guarantees will therefore be subject to restrictions on transferability and resale. OPI does not intend to register the sale of any of the New Notes and related guarantees under the Securities Act or the securities laws of any other jurisdiction and is not providing registration rights. The New Notes and related guarantees may not be offered or sold in
Eligible Holders
The Amended Exchange Offers are being made, and the New Notes and related guarantees are being offered and issued, only to holders who have certified to OPI that either they are (a) in the
The Offering Memorandum is only available to holders who complete an eligibility letter confirming their status as Eligible Holders. Holders of Existing Notes who wish to receive a copy of the eligibility letters for the Amended Exchange Offers may contact the information and exchange agent, D.F. King & Co (the “Information and Exchange Agent”), at D.F. King & Co., Inc., 48 Wall Street,
Requests for the Amended Exchange Offer materials from Eligible Holders may be directed to the Information and Exchange Agent at D.F. King & Co., Inc., 48 Wall Street,
General
OPI is making the Amended Exchange Offers only by, and pursuant to, the terms of the Offering Memorandum, as amended by this press release. OPI reserves the right to terminate, withdraw, amend or extend one or more of the Amended Exchange Offers in its discretion, subject to the terms and conditions set forth in the Offering Memorandum, as amended by this press release.
None of OPI, Moelis & Company LLC, as dealer manager, the Information and Exchange Agent, their respective affiliates nor any other person makes any recommendation as to whether Eligible Holders should tender or refrain from tendering their Existing Notes in the Amended Exchange Offers, as applicable. Eligible Holders must make their own decision as to whether or not to tender their Existing Notes, as applicable, as well as with respect to the principal amount of the Existing Notes to tender.
The Amended Exchange Offers are not being made to any holders of Existing Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. The Existing Notes that are not exchanged will continue to be outstanding in accordance with all other terms of the Existing Notes and the indentures governing such Existing Notes.
This press release is being made for informational purposes only in accordance with Rule 135c of the Securities Act and does not constitute an offer to purchase securities or a solicitation of an offer to sell any securities or an offer to sell or the solicitation of an offer to purchase any new securities, nor does it constitute an offer or solicitation in any jurisdiction in which such offer or solicitation is unlawful. The Amended Exchange Offers are being made solely on the terms and subject to the conditions set forth in the Offering Memorandum, as amended by this press release, and the information in this press release is qualified by reference to such Offering Memorandum.
About Office Properties Income Trust
OPI is a national REIT focused on owning and leasing office properties to high credit quality tenants in markets throughout
WARNING CONCERNING FORWARD-LOOKING STATEMENTS
Statements in this news release, including statements regarding the Amended Exchange Offers constitute “forward-looking statements” that do not directly or exclusively relate to historical facts. When used in this release, the words “may,” “will,” “might,” “should,” “expect,” “plan,” “anticipate,” “project,” “believe,” “estimate,” “predict,” “intend,” “potential,” “outlook,” and “continue,” and the negative of these terms, and other similar expressions are intended to identify forward-looking statements and information.
The forward-looking statements reflect OPI’s intentions, plans, expectations, anticipations, projections, estimations, predictions, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside of OPI’s control. Important factors that could cause actual results to differ materially from the expectations expressed or implied in the forward-looking statements include known and unknown risks. Known risks include, among others, market conditions and the risks described in OPI’s annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports and risks and uncertainties related to OPI’s ability to consummate the Amended Exchange Offers.
You should not place undue reliance upon forward-looking statements. Except as required by law, OPI does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.
A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250302424907/en/
Questions regarding the Amended Exchange Offers may be directed to:
Kevin Barry, Senior Director, Investor Relations
(617) 219-1410
Source: Office Properties Income Trust
FAQ
What changes did OPI make to its exchange offers for senior unsecured notes?
What is the interest rate and maturity of OPI's new notes being offered?
When is the expiration time for OPI's amended exchange offers?
Who is eligible to participate in OPI's exchange offers?
