Published on 8/2/2021 in the Prospect News Investment Grade Daily.
New Issue: Corporate Office sells $400 million 2% note due 2029 at 105 bps spread
By Devika Patel
Knoxville, Tenn., Aug. 2 – Corporate Office Properties LP priced $400 million of 2% senior guaranteed notes due Jan. 15, 2029 (Baa3/BBB-/BBB-) on Monday at a spread of 105 basis points over Treasuries, according to an FWP filed with the Securities and Exchange Commission.
The notes priced at 99.973 to yield 2.004% and will be guaranteed by Corporate Office Properties Trust.
J.P. Morgan Securities LLC, Barclays, KeyBanc Capital Markets Inc., Wells Fargo Securities, LLC, BofA Securities, Inc., Capital One Securities, Inc., Citigroup Global Markets Inc. and PNC Capital Markets LLC were the bookrunners.
U.S. Bank NA is the trustee.
Counsel for the issuer is Morgan, Lewis & Bockius LLP. Counsel for the guarantor is Saul Ewing Arnstein & Lehr LLP.
Proceeds will be used to repay a portion of an unsecured term loan and for general corporate purposes, including paying down amounts under the company’s revolver.
The real estate investment trust for suburban office properties is based in Columbia, Md.
| Issuer: | Corporate Office Properties LP
|
| Guarantor: | Corporate Office Properties Trust
|
| Description: | Senior notes
|
| Amount: | $400 million
|
| Maturity: | Jan. 15, 2029
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays Capital Inc., KeyBanc Capital Markets Inc., Wells Fargo Securities, LLC, BofA Securities, Inc., Capital One Securities, Inc., Citigroup Global Markets Inc. and PNC Capital Markets LLC
|
| Co-managers: | M&T Securities, Inc., Regions Securities LLC, TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
|
| Counsel to the issuer: | Morgan, Lewis & Bockius LLP
|
| Counsel to the guarantor: | Saul Ewing Arnstein & Lehr LLP
|
| Trustee: | U.S. Bank NA
|
| Coupon: | 2%
|
| Price: | 99.973
|
| Yield: | 2.004%
|
| Spread: | Treasuries plus 105 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps until Nov. 15, 2028, then a par call
|
| Trade date: | Aug. 2
|
| Settlement date: | Aug. 11
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Cusip: | 22003BAN6
|
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