BOSTON-Boston Properties Inc., through its Boston Properties LP, has agreed to sell $1 billion in senior unsecured notes in an underwritten public offering. The 3.85% notes are due in February 2023, and will be used for general business purposes, the company said in a statement.
The notes were underwritten through Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Inc., Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC, as joint book-running managers. The notes were priced at 99.779% of the principal amount to yield 3.876% to maturity.
The company said the net proceeds could be used for investment opportunities and debt reduction. Pending such uses, the company may invest the net proceeds in short-term, interest-bearing securities. Boston Properties owns a portfolio of office buildings, one hotel, three residential and three retail properties, mostly along the East Coast and in San Francisco.
In early May, the firm reported that its first-quarter funds from operations rose 4.4% year over year to $166.9 million, net income was up more than 58% year over year to $64.6 million, and revenues were also up to $447.7 million, as rents increased. BXP pegged a full-year FFO increase of 18 cents per share to expected income from its $615-million acquisition of 100 Federal St. in Boston during the quarter.
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