The Salesforce Tower project in San Francisco is expected to receive financing from the green bonds offering.
BOSTON—Boston Properties Inc. has priced a $1-billion offering of senior unsecured notes and has earmarked proceeds, which are projected to be more than $988 million, to finance or refinance its existing or planned green projects nationwide.
The company reports that its operating partnership, Boston Properties Limited Partnership has agreed to sell $1 billion of 4.500% senior unsecured notes due 2028 in an underwritten public offering.
The offering will be conducted through Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. LLC, BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc., Jefferies LLC, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., as joint book-running managers.
The notes are priced at 99.641% of the principal amount to yield 4.545% to maturity. The notes will mature on Dec. 1, 2028, unless earlier redeemed. The offering is expected to close on Nov. 28, 2018.
The real estate investment and development company estimated net proceeds from the pending offering to be approximately $988.1 million. BPLP intends to allocate an amount equal to the net proceeds from this offering to the financing and refinancing of recently completed and future eligible green projects in the United States, including the Salesforce Tower development project in San Francisco, which has received LEED Platinum certification.
BPLP currently owns and actively manages more than 20 million square feet of green building projects that have been certified at the highest LEED Gold and LEED Platinum levels.
BPLP intends to initially use the net proceeds from this offering for the repayment of debt, including funding the redemption of the 5.875% senior notes due 2019 that are scheduled to mature on Oct. 15, 2019 and, for any net proceeds from this offering not used to fund the redemption of the 2019 notes, repaying borrowings outstanding under its unsecured revolving line of credit. Pending such uses, BPLP may invest the proceeds in short-term, interest-bearing, investment-grade securities, the company states.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
