Published on 6/18/2013 in the Prospect News Investment Grade Daily.
New Issue: Boston Properties prices $700 million 3.8% 10.5-year notes at Treasuries plus 165 bps
By Andrea Heisinger
New York, June 18 - Boston Properties LP sold an upsized $700 million of 3.8% senior notes due 2024 (Baa2/A-/BBB) on Tuesday at a spread of Treasuries plus 165 basis points, a market source said.
The size was increased from $500 million.
Pricing was at 99.694 to yield 3.835%.
The notes will have a make-whole call at 25 bps over Treasuries until Nov. 1, 2023, with a par call after that date.
Active bookrunners were BofA Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC. Passive bookrunners were BNY Mellon Capital Markets LLC and Wells Fargo Securities LLC.
Proceeds will be used for general corporate purposes, including investment opportunities and debt reduction.
The Boston-based real estate investment trust for office properties was last in the bond market with a $500 million sale of 3.125% long 10-year notes priced at 133 bps over Treasuries on April 2.
| Issuer: | Boston Properties LP
|
| Issue: | Senior notes
|
| Amount: | $700 million, upsized from $500 million
|
| Maturity: | Feb. 1, 2024
|
| Bookrunners: | BofA Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC (active), BNY Mellon Capital Markets LLC, Wells Fargo Securities LLC (passive)
|
| Co-managers: | Capital One Southcoast, Inc., Mitsubishi UFJ Securities (USA), Inc., Santander Investment Securities Inc., Scotia Capital (USA) Inc., SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc.
|
| Coupon: | 3.8%
|
| Price: | 99.694
|
| Yield: | 3.835%
|
| Spread: | Treasuries plus 165 bps
|
| Call: | Make-whole at Treasuries plus 25 bps to Nov. 1, 2023, par call after
|
| Trade date: | June 18
|
| Settlement date: | June 27
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: A-
|
| Fitch: BBB
|
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