Office Properties Income Trust Prices $400 Million of 3.450% Senior Notes Due 2031

Rhea-AI Summary

Office Properties Income Trust (Nasdaq: OPI) has priced an underwritten public offering of $400 million in 3.450% senior notes due 2031. The settlement is anticipated on September 28, 2021, pending customary closing conditions. Proceeds will be used for general business purposes, including repayment of outstanding amounts under its revolving credit facility. The offering is conducted under an effective shelf registration statement filed with the SEC.

Positive

• Successful pricing of $400 million in senior notes indicates strong investor interest.
• Proceeds aimed at improving liquidity by potentially repaying revolving credit facility.

Negative

• Closing of the offering is subject to various conditions, which may not be satisfied.
• Use of proceeds is contingent upon the successful closing of the offering.

NEWTON, Mass.--(BUSINESS WIRE)-- Office Properties Income Trust (Nasdaq: OPI) today announced that it has priced an underwritten public offering of $400 million of 3.450% senior notes due 2031 (“Notes”). The settlement of this offering is expected to occur on September 28, 2021, subject to customary closing conditions. OPI expects to use the net proceeds from this offering for general business purposes, which may include repaying amounts outstanding under its revolving credit facility.

The joint book-running managers for this offering are BofA Securities, Inc., Wells Fargo Securities, LLC, Citigroup Global Markets Inc., Mizuho Securities USA LLC, PNC Capital Markets LLC and RBC Capital Markets, LLC. The joint lead managers for this offering are BMO Capital Markets Corp., Regions Securities LLC, SMBC Nikko Securities America, Inc., Truist Securities, Inc. and U.S. Bancorp Investments, Inc. The co-managers for this offering are Samuel A. Ramirez & Company, Inc., Barclays Capital Inc., FHN Financial Securities Corp., Morgan Stanley & Co. LLC and UBS Securities LLC.

This offering is being made pursuant to an effective shelf registration statement and prospectus and a related preliminary prospectus supplement filed by OPI with the Securities and Exchange Commission. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which the offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that state or jurisdiction. Copies of the prospectus supplement relating to this offering and the related prospectus may be obtained by contacting the offices of: BofA Securities, Inc. toll-free at 1-800-294-1322 or Wells Fargo Securities, LLC toll-free at 1-800-645-3751.

Office Properties Income Trust is a real estate investment trust, or REIT, focused on owning, operating and leasing properties primarily leased to single tenants and those with high credit quality characteristics such as government entities. OPI is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, Massachusetts.

Warning Concerning Forward-Looking Statements

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever OPI uses words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, “will”, “may” and negatives or derivatives of these or similar expressions, OPI is making forward-looking statements. These forward-looking statements are based upon OPI’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by OPI’s forward-looking statements as a result of various factors. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond OPI's control. For example:

• This press release states that the closing of the Notes offering is expected to occur on September 28, 2021. The closing of this offering is subject to various conditions and contingencies as are customary in underwriting agreements in the United States. If these conditions are not satisfied or the specified contingencies do not occur, this offering may not close.
• OPI’s current intent is to use the proceeds from the Notes offering for general business purposes, which may include repaying amounts outstanding under its revolving credit facility. The receipt and use of the proceeds is dependent on the closing of this offering and may not occur.

The information contained in OPI’s filings with the SEC, including under “Risk Factors” in OPI’s periodic reports, or incorporated therein, identifies other important factors that could cause OPI’s actual results to differ materially from those stated in or implied by OPI’s forward-looking statements. OPI’s filings with the SEC are available on the SEC's website at www.sec.gov.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210921006129/en/

Kevin Barry, Manager, Investor Relations

(617) 219-1410

Source: The RMR Office Property Fund LP

FAQ

What is the purpose of Office Properties Income Trust's $400 million public offering?

The proceeds will be used for general business purposes, including repaying outstanding amounts under the revolving credit facility.

When is the settlement date for OPI's senior notes offering?

The settlement is expected to occur on September 28, 2021.

What are the terms of the senior notes issued by OPI?

The senior notes have a rate of 3.450% and are due in 2031.

Who are the joint book-running managers for OPI's offering?

The joint book-running managers include BofA Securities, Wells Fargo Securities, Citigroup Global Markets, and others.

What risks are associated with OPI's public offering?

The closing is subject to customary conditions, which, if unmet, may prevent the offering from closing.