Boston Properties, Inc. (BXP) said Tuesday that its operating partnership, Boston Properties LP has agreed to sell $500 million of 3.125% senior unsecured notes due 2023 in an underwritten public offering through Citigroup, Deutsche Bank Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley & Co. LLC, as joint book-running managers.
The notes were priced at 99.379% of the principal amount to yield 3.196% to maturity. The notes will mature on September 1, 2023 unless earlier redeemed.
The offering is expected to close on April 11.
The estimated net proceeds from this offering are expected to be about $492.5 million after deducting underwriting discounts and estimated transaction expenses of about $7.5 million.
Boston Properties LP plans to use the net proceeds from the sale of the notes for general business purposes, which may include investment opportunities and debt reduction. Pending such uses, Boston Properties LP may invest the net proceeds in short-term, interest-bearing securities.
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