Office Properties Income Trust priced $425 million of 8.75% senior secured notes due 2031. For investors, OPI says net proceeds, combined with cash on hand, are intended to repay all outstanding borrowings under its secured revolving Credit Facility and secured term loan, subject to closing.

Key Highlights

  • Settlement of the notes is expected on September 24, subject to customary closing conditions.
  • The notes will carry guarantees from certain OPI subsidiaries and first-priority liens on office properties.
  • Certain OPI subsidiaries will guarantee the notes, which will be backed by first-priority liens on OPI office properties and pledges of guarantors’ Equity interests.

The notes will be sold privately to qualified institutional buyers in the United States and to non-U.S. Persons outside the country.

Notes Carry Property Security and 2031 Maturity

The notes will be guaranteed by certain OPI subsidiaries and backed by first-priority liens on office (NASDAQ: OPI) properties, alongside a pledge of the guarantors’ equity interests. Settlement is expected on September 24, subject to customary closing conditions. The securities and related guarantees have not been registered under the Securities Act or state securities laws. The offering is limited to qualified institutional buyers under Rule 144A in the United States and non-U.S. Persons relying on Regulation S outside the country.

Proceeds Target Secured Borrowings

The company identifies both the expected settlement date and the intended use of proceeds as forward-looking statements. If those conditions are not satisfied, the offering may not close and the planned proceeds use may not occur.