Boston Properties Offers Notes – Analyst Blog

Boston Properties Inc. (BXP), a real estate investment trust (REIT), has recently announced an offering of $700 million aggregate principal amount of 5.625% senior unsecured notes due November 15, 2020.

 

The debt offering is managed by Bank of America Securities LLC – the investment banking arm of Bank of America Corp. (BAC); J.P. Morgan Securities Inc., the U.S. investment banking arm of financial services giant JPMorgan Chase & Co. (JPM); Citigroup Global Markets Inc., the brokerage and securities arm of Citigroup Inc. (C); Morgan Stanley & Co. Incorporated, the investment banking division of Morgan Stanley (MS); and Deutsche Bank Securities Inc., the U.S. investment banking and securities arm of the German banking colossus Deutsche Bank AG (DB).

 

The company expects to raise net proceeds of approximately $693.5 million from the offering. The net proceeds from the offering would be primarily used to reduce debt and for general corporate purposes. Boston Properties has priced the notes at 99.89% of the face amount to yield 5.6% to maturity.

 

Boston Properties owns and develops one of the largest Class A office portfolios in the U.S. The properties of the company are primarily located in five markets – Boston, Washington DC, midtown Manhattan, San Francisco and Princeton, New Jersey. Boston Properties also operates retail assets and a hotel. However, the bulk of the company’s revenue is generated from office properties, which are primarily concentrated in large, high-barrier urban markets that usually fare better in a faltering economy.