Boston Properties to redeem $1 billion 3.85% notes due 2023 at 104.28 excluding interest

By Rebecca Melvin

Concord, N.H., Oct. 13 – Boston Properties Inc. said it will redeem all $1 billion of its 3.85% senior notes due Feb. 1, 2023 at 104.28 excluding interest, according to a company news release on Wednesday.

The notes were issued by Boston Properties LP.

The 2023 notes will be redeemed in full on Oct. 15 at a cost to the company of $1.05 billion, including $7.9 million in accrued interest.

The redemption is being funded with proceeds of $850 million of 2.45% senior notes due 2033 that priced in September, revolver borrowings and cash on hand.

The company expects to record a loss from the early redemption of about $43.9 million in the fourth quarter, including about $1 million of unamortized financing and other costs.

“We're pleased with the timing and execution of this refinancing, which will reduce the company’s borrowing costs.... This refinancing demonstrates our strategy of actively managing our strong balance sheet and access to capital to minimize long-term debt costs,” Michael LaBelle, executive vice president, CFO, BXP, stated in the release.

The Boston-based real estate investment trust develops and owns office properties.

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