Boston Properties Inc
) stated that its operating partner - Boston Properties Limited
Partnership ('BPLP') - priced an underwritten public offering
of 3.800% senior unsecured notes worth $700 million at 99.694% of
the principal amount. The transaction is likely to close on Jun
The senior unsecured notes will mature on Feb 1, 2024 and have
a yield to maturity of 3.835%. Notably, Deutsche Bank Securities
Deutsche Bank AG
), Morgan Stanley & Co. LLC of
), Merrill Lynch, Pierce, Fenner & Smith and J.P. Morgan
Securities LLC, Incorporated of
JPMorgan Chase & Co.
) supported Boston Properties by acting as joint book-running
managers for the offering.
The net proceeds from this notes offering is projected to be
around $691.9 million (excluding underwriting discounts and
estimated transaction expenses of about $8.1 million). It is
planned to be utilized for future investments, reducing debt
levels, invest in short-term interest-bearing securities and
other general corporate purposes.
As of Mar 31, 2013, Boston Properties had cash and cash
equivalents of about $909.4 million compared with $1.04 billion
as of Dec 31, 2012. The aforementioned offering will help the
company to lower its debt and thereby its interest expenses.
Moreover, increased financial flexibility will enable Boston
Properties to pursue strong portfolio restructuring activity,
which will go a long way in enhancing its top-line growth.
Notably, Boston Properties is benefiting from improved core
operations and has been successful in keeping a strong hold on
high barrier-to-entry U.S. markets through enhancement of its
Boston Properties currently carries a Zacks Rank #3
BOSTON PPTYS (BXP): Free Stock Analysis
DEUTSCHE BK AG (DB): Free Stock Analysis
JPMORGAN CHASE (JPM): Free Stock Analysis
MORGAN STANLEY (MS): Free Stock Analysis
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