Brixmor prices tender offer for 3.65% notes due 2024

By William Gullotti

Buffalo, N.Y., April 24 – Brixmor Property Group Inc. announced pricing for 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) in a press release on Monday.

As reported earlier on Monday, 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, which resulted in the company increasing the cap to accept for purchase all of the early tendered notes.

With pricing based on the 0.375% U.S. Treasury due April 15, 2024 and a fixed spread of 135 basis points, the total consideration will be $972.98 per $1,000 principal amount of notes tendered.

The total consideration includes the early tender premium of $30 per $1,000 principal amount of notes tendered and reflects a reference yield of 4.787%.

Early settlement remains scheduled for April 25.

As previously reported, 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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