Interest on the notes will be paid semiannually on May 1 and Nov. 1, beginning this Nov. 1. The offering price is 99.8% with a yield to maturity of 5.8%, which represents a spread of 1.1% in relation to the February 2017 treasury note.
The locally based REIT will use all proceeds to pay debt on its unsecured revolving credit facility, which, according to an SEC filing, matures on Dec. 22, 2009. According to the filing, the outstanding balance on the facility as of April 23 was approximately $572 million. On that date, the annual interest rate was 6%, based on a rate of Libor plus from 55 to 110 basis points, depending on the REIT's debt rating.
Moody's Investors Service rates the notes in this offering Baa3, and Standard & Poor's and Fitch Ratings rates them BBB-. Joint book-running managers for the offering are Banc of America Securities LLC, JP Morgan Securities Inc. and Wachovia Capital Markets LLC, each with an $88-million share of the offer, according to Brandywine's SEC filing.
Eight co-managers each have a $4.5-million share of the offering. They are: BMO Capital Markets Corp., BNY Capital Markets Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Greenwich Capital Markets Inc., Morgan Keegan & Co. Inc., Piper Jaffrey & Co. Inc. and RBC Capital Markets Corp.
Brandywine is headed by Jerry Sweeney, CEO. It focuses primarily on class A suburban and urban office buildings, and the portfolio aggregates approximately 42 million sf.
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