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RADNOR, PA-Brandywine Realty Trust's operating partnership has begun a private offering of $300 million in exchangeable guaranteed notes due Oct. 15, 2026. Within 30 days, additional notes aggregating up to $45 million may be issued to initial purchasers to cover any over-allotments.

The notes are unsecured obligations of the operating partnership. According to a statement from Brandywine CEO Gerard Sweeney's team, they will be fully and unconditionally guaranteed by the locally based REIT. Under SEC rules, the notes are available only to qualified institutional buyers. A buyer has the option of exchanging the notes into cash and, with the agreement of the operating partnership, into Brandywine common stock.

Brandywine expects to use a portion of the net proceeds to repurchase up to $60 million in shares of its common stock. It will also repay an unspecified portion of outstanding debt under its revolving credit facility. According to an SEC filing Aug. 9, Brandywine had $195 million of debt and $23.4 million of letters of credit outstanding on its credit facility at the second-quarter close. The weighted-average interest rate was 5.48% during this year, up from 4.06% for 2005.