By Paul A. Harris
Portland, Ore., Feb. 7 – Office Properties Income Trust priced a $300 million issue of 9% five-year senior secured notes at 93.5 to yield 10.67% in a Wednesday drive-by, according to market sources.
The yield came within the 10½% to 10.8% yield talk. The deal was initially guided with a coupon in the 9% area at an issue price of 93 to 94.
The deal was heard to have come with considerable reverse inquiry, a trader said.
B. Riley Securities Inc. was the lead.
The Newton, Mass.-based real estate investment trust plans to use the proceeds to redeem its 4¼% senior notes due 2024.
Office Properties Income Trust is focused on owning and leasing office and mixed-use properties.
| Issuer: | Office Properties Income Trust
|
| Amount: | $300 million
|
| Issue: | Senior secured notes
|
| Maturity: | March 31, 2029
|
| Lead: | B. Riley Securities Inc.
|
| Coupon: | 9%
|
| Price: | 93.5
|
| Yield: | 10.67%
|
| Call protection: | Two years
|
| Trade date: | Feb. 7
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 10½% to 10.8%
|
| Marketing: | Drive-by
|
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