Brandywine repurchases $47.6 million of 4.5% notes in tender offer

By Angela McDaniels

Tacoma, Wash., Aug. 14 - Brandywine Realty Trust said its operating partnership, Brandywine Operating Partnership, LP, has purchased $47,601,000 principal amount, or 31.7%, of its $150,151,000 of 4.5% guaranteed notes due Nov. 1, 2009.

Holders received $1,004 for each $1,000 principal amount of notes plus accrued interest up to but excluding the payment date, which was Aug. 14.

A tender offer for the 4.5% notes began on Aug. 6 along with a tender offer for up to $100 million principal amount of the partnership's $287.83 million 5.625% guaranteed notes due Dec. 15, 2010 and $210,546,000 5.75% guaranteed notes due April 1, 2012.

The offer for the 4.5% notes expired at 5 p.m. ET on Aug. 13, and the offer for the 5.625% notes and 5.75% notes will expire at 11:59 p.m. ET on Sept. 2.

For each $1,000 principal amount, the company is offering $950 for the 5.75% notes and $970 for the 5.625% notes. In each case, the payout includes a $30 early tender payment for each note tendered by 5 p.m. ET on Aug. 19.

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

If the offer for the 5.625% notes and 5.75% notes is oversubscribed, all 5.75% notes tendered will be accepted for purchase, subject to proration, before any 5.625% notes are purchased.

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

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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