Boston Properties, Inc., the largest publicly traded developer, owner and manager of premier workplaces in the United States, announced that its operating partnership, Boston Properties Limited Partnership, has agreed to sell $750 million of 6.750% senior unsecured notes due 2027 in an underwritten public offering through BofA Securities, Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC, as joint book-running managers. The notes were priced at 99.941% of the principal amount to yield 6.763% to maturity. The notes will mature on December 1, 2027, unless earlier redeemed. The offering is expected to close on November 17, 2022, subject to the satisfaction of customary closing conditions.

The estimated net proceeds from the offering are expected to be approximately $743.5 million. BPLP intends to allocate an amount equal to the net proceeds from the offering to the financing and refinancing of recently completed and future “eligible green projects” in the United States.

Pending such allocation, BPLP intends to use the net proceeds for the repayment of debt, including borrowings outstanding under its $1.5 billion unsecured revolving credit facility, funding development and redevelopment projects or other investment opportunities and for other uses. Pending such uses, BPLP may invest the net proceeds in short-term, interest-bearing deposit accounts. Net proceeds allocated to previously incurred costs associated with “eligible green projects” will be available for the repayment of debt and other uses.

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The impact of this offering was not previously reflected in BXP’s earnings guidance for full year 2022 and 2023. BXP estimates the offering will reduce 2022 and 2023 (1) net income attributable to common shareholders (EPS) by approximately $0.02 per share and $0.08 per share, respectively, and (2) diluted funds from operations (FFO) per share by approximately $0.02 per share and $0.08 per share, respectively, due to increased net interest expense associated with the offering.

This is BPLP’s fifth green bond offering. Since BPLP’s initial green bond offering in November 2018, BPLP has issued $3.55 billion of green bonds in four separate bond offerings.

Source: Boston Properties