Brixmor sees early tenders for $199.6 million of 3.65% notes due 2024

By Marisa Wong

Los Angeles, April 24 – Brixmor Property Group Inc. announced the early results of operating partnership Brixmor Operating Partnership LP’s April 10 cash tender offer to purchase up to $150 million of its $500 million outstanding 3.65% senior notes due 2024 (Cusip: 11120VAF0).

Holders had tendered $199,648,000 of the notes as of the early tender deadline and withdrawal deadline at 5 p.m. ET on April 21, according to a Monday press release.

The company has decided to increase the tender cap to $199,648,000 and expects to accept for purchase all of the early tendered notes.

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.

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. However, because the offer was fully subscribed as of the early tender deadline, the company will not accept for purchase any notes tendered after the early deadline.

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 had 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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