Office Properties Income Trust (OPI) announced the consummation of its previously announced private exchange of a portion of its 4.50% senior unsecured notes due 2025. This exchange directly or indirectly accounted for $340 million of the 2025 Notes, marking a key step in managing OPI's debt obligations.
In exchange for the 2025 Notes, OPI issued approximately $445 million of new 3.25% senior secured notes due 2027, provided cash for accrued interest, and issued approximately 11.5 million shares of OPI common stock. The company also paid premiums totaling $25.0 million. The 2027 Notes require quarterly principal amortization of $6.5 million and a mandatory principal repayment of $125 million by March 1, 2026.
Following this exchange, OPI intends to repurchase, redeem, or repay the remaining $113.1 million of outstanding 2025 Notes prior to their February 1, 2025 maturity date. The 2027 Notes are secured by first-priority liens on 35 properties with a Gross Book Value of approximately $1.3 billion and second-priority liens on 19 additional properties.
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