BXP's operating partnership proposes notes offering

BXP (NYSE:BXP) announced that its operating partnership, Boston Properties Limited Partnership (BPLP), plans to offer $600 million of exchangeable senior notes due 2030 in a private placement to qualified institutional buyers, with an option for purchasers to buy an additional $90 million within 13 days.

The notes will mature on October 1, 2030, unless repurchased, exchanged, or redeemed earlier. The interest rate, initial exchange rate and other terms of the notes will be determined at the pricing of the offering.

Boston Properties plans to use the net proceeds from the note offering to cover the cost of capped call transactions and to partially repay or redeem its $1.0 billion 3.650% senior notes due 2026. The remaining repayment will come from available cash or borrowings under its revolving credit facility.

If buyers exercise their option to purchase additional notes, part of those proceeds may be used for additional capped call transactions. Until the proceeds are used to repay the 2026 notes, BPLP may repay other debt or invest the funds in short-term interest-bearing accounts.