Brandywine says offer for 5.75% notes oversubscribed at early tender, cancels offer for 5.625% notes

By Angela McDaniels

Tacoma, Wash., Aug. 20 - Brandywine Realty Trust said its operating partnership, Brandywine Operating Partnership, LP, had received tenders for more than $100 million principal amount of its 5.75% guaranteed notes due April 1, 2012 as of 5 p.m. ET on Aug. 19, which was the early tender date in an offer that will expire at 11:59 p.m. ET on Sept. 2.

The company has offered to purchase up to $100 million of the $210,546,000 5.75% notes and $287.83 million 5.625% guaranteed notes due Dec. 15, 2010.

Brandywine previously said that if the offer is oversubscribed, all 5.75% notes tendered will be accepted for purchase, subject to proration, before any 5.625% notes are purchased.

Because the principal amount of 5.75% notes tendered so far exceeds the cap, Brandywine had canceled the 5.625% notes portion of the offer. All 5.625% notes tendered will be returned.

For each $1,000 principal amount, the company is offering $950 for the 5.75% notes and was offering $970 for the 5.625% notes. The payout includes a $30 early tender payment for each note tendered by the early tender date.

Holders will also receive accrued interest up to but excluding the payment date.

The tender offer is not conditioned on any minimum amount of notes being tendered.

The offer began on Aug. 6 along with a tender offer for the partnership's $150,151,000 of 4.5% guaranteed notes due Nov. 1, 2009. That offer expired at 5 p.m. ET on Aug. 13.

Brandywine purchased $47,601,000 principal amount, or 31.7%, of the 4.5% notes at a price of $1,004 each plus accrued interest up to but excluding the payment date, which was Aug. 14.

The notes purchased in the first offer have been canceled, and notes purchased in the second offer are expected to be canceled also.

The offers are being funded by a combination of available cash on hand and borrowings under the partnership's unsecured revolving credit facility.

Wells Fargo Securities (866 309-6316 or 704 715-8341) is the lead dealer manager, with Citi and Deutsche Bank Securities as co-dealer managers. Global Bondholder Services Corp. (866 540-1500 or 212 430-3774) is the information agent.

Brandywine is a real estate investment trust based in Radnor, Pa., that owns, develops and manages a primarily class A, suburban and urban office portfolio.

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