NEWS
Office Properties Income Trust Announces Entry into Private Exchange Agreement with Certain Noteholders to Address 2025 Debt Maturities
Private Exchange of $340 Million Expected to Close Before Year End
Office Properties Income Trust (NASDAQ:OPI) ("OPI") announced it has entered into an exchange agreement ("Exchange Agreement") providing for a private exchange (the "Exchange") with certain members of an ad hoc group of noteholders holding a significant amount of OPI's $453.6 million outstanding senior unsecured notes due 2025 (the "2025 Notes") to refinance up to $340 million of the 2025 Notes. OPI intends to repurchase, redeem or repay the remaining $113.6 million of outstanding senior unsecured notes due 2025 with cash in connection with the consummation of the Exchange. The Exchange is expected to close before year end 2024.
Under the terms of the Exchange, noteholders party to the Exchange Agreement will exchange their 2025 Notes for: (i) a pro rata portion of $445 million new senior secured notes due 2027 (the "2027 Notes"), (ii) cash for accrued interest on the 2025 Notes up to but not including the closing date, (iii) a pro rata portion of approximately 11.5 million shares of OPI common stock, representing 19.9% of OPI's issued and outstanding common shares as of the date of the Exchange Agreement (the "Exchange Shares" and together with the 2027 Notes, the "Exchange Consideration") and (iv) certain premiums as described below. The 2027 Notes will mature on March 15, 2027. The 2027 Notes will be issued with an interest rate of 3.25% per annum and require quarterly principal amortization of $6.5 million and a mandatory principal repayment of $125 million due by March 1, 2026, unless satisfied sooner with proceeds from certain asset sales. The 2027 Notes will be secured by first-priority liens on 35 properties with a Gross Book Value of approximately $1.3 billion and second-priority liens on 19 additional properties that secure OPI's approximately $610 million of senior secured notes due 2029 with a Gross Book Value of approximately $717 million.
Office Properties Income Trust (NASDAQ:OPI) ("OPI") announced it has entered into an exchange agreement ("Exchange Agreement") providing for a private exchange (the "Exchange") with certain members of an ad hoc group of noteholders holding a significant amount of OPI's $453.6 million outstanding senior unsecured notes due 2025 (the "2025 Notes") to refinance up to $340 million of the 2025 Notes. OPI intends to repurchase, redeem or repay the remaining $113.6 million of outstanding senior unsecured notes due 2025 with cash in connection with the consummation of the Exchange. The Exchange is expected to close before year end 2024.
Under the terms of the Exchange, noteholders party to the Exchange Agreement will exchange their 2025 Notes for: (i) a pro rata portion of $445 million new senior secured notes due 2027 (the "2027 Notes"), (ii) cash for accrued interest on the 2025 Notes up to but not including the closing date, (iii) a pro rata portion of approximately 11.5 million shares of OPI common stock, representing 19.9% of OPI's issued and outstanding common shares as of the date of the Exchange Agreement (the "Exchange Shares" and together with the 2027 Notes, the "Exchange Consideration") and (iv) certain premiums as described below. The 2027 Notes will mature on March 15, 2027. The 2027 Notes will be issued with an interest rate of 3.25% per annum and require quarterly principal amortization of $6.5 million and a mandatory principal repayment of $125 million due by March 1, 2026, unless satisfied sooner with proceeds from certain asset sales. The 2027 Notes will be secured by first-priority liens on 35 properties with a Gross Book Value of approximately $1.3 billion and second-priority liens on 19 additional properties that secure OPI's approximately $610 million of senior secured notes due 2029 with a Gross Book Value of approximately $717 million.
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