Boston Properties to call 2.875% exchangeables following put option

By Ashley Montgomery

Kansas City, Kan., Jan. 10 - Boston Properties, Inc. said Boston Properties LP will redeem any 2.875% exchangeable senior notes due 2037 that remain outstanding after holders exercise their put option.

According to a company news release, the outstanding notes will be redeemed at par plus accrued interest to Feb. 20, the redemption date.

The current outstanding balance on the notes is $576,194,000.

The terms of the notes indenture allow holders to put all or part of the notes for purchase beginning 9 a.m. ET on Jan. 11 and ending 5 p.m. ET on Feb. 8, the release said. The tendered notes will be repurchased at par plus accrued interest to Feb. 15, the repurchase date.

Noteholders may also exchange their notes any time before 5 p.m. ET on Feb. 16.

Holders who choose to exchange their notes, will receive, per $1,000 principal amount:

• The lesser of $50 and 1/20 of the value of 7.0430 shares of the company's common stock; and

• If the value of the common stock on the day of exchange exceeds the principal amount of the notes surrendered for exchange, cash or shares of the company's common stock equal to the amount of the excess.

Exchanged notes, will not be entitled to accrued or unpaid interest, however holders as of Feb. 1 will still receive the scheduled interest payment on Feb. 15.

The company's common stock (NYSE: BXP) closed at $98.64 on Monday.

Bank of New York Mellon Trust Co., NA is the trustee.

The real estate investment trust is based in Boston.

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