Brixmor begins tender offer for up to $150 million 3.65% notes

By Marisa Wong

Los Angeles, April 10 – Brixmor Property Group Inc. announced that operating partnership Brixmor Operating Partnership LP has begun a cash tender offer to purchase up to $150 million of its $500 million outstanding 3.65% senior notes due 2024 (Cusip: 11120VAF0), according to a Monday press release.

Pricing will be based on the 0.375% U.S. Treasury due April 15, 2024 and a fixed spread of 135 basis points.

The total consideration will include an early tender premium of $30 per $1,000 principal amount of notes tendered by the early tender deadline. Holders tendering after the early deadline will only be eligible to receive the tender offer consideration, which is the total consideration less the early tender premium.

The early tender deadline is 5 p.m. ET on April 21, which is also the withdrawal deadline.

Pricing will be determined at 10 a.m. ET on April 24.

Early settlement is expected to be on April 25.

The offer expires at 5 p.m. ET on May 8.

Final settlement is slated for May 10.

Tenders may be subject to proration if the total amount tendered exceeds the offer cap.

The tender offer is not conditioned on any minimum principal amount of notes being tendered but is subject to some other conditions.

J.P. Morgan Securities LLC (866 834-4666 or 212 834-4818) is the dealer manager.

D.F. King & Co., Inc. (800 347-4750, 212 269-5550; brixmor@dfking.com) is the information agent and tender agent.

The company said the main purpose of the tender offer is to extend the term of the operating partnership’s outstanding debt by purchasing the notes up to the tender cap using the proceeds of borrowings under the $200 million delayed-draw term loan that is available under the operating partnership’s amended and restated unsecured credit facility. Notes that are accepted in the tender offer will be purchased and retired and canceled.

Brixmor is a New York-based real estate investment trust that owns and operates a national portfolio of open-air shopping centers.

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