Brandywine wraps tenders for two note series, issues call for remainder

By Susanna Moon

Chicago, Sept. 16 – Brandywine Realty Trust said its operating partnership, Brandywine Operating Partnership, LP, settled the cash tender offer for two series of its outstanding notes Tuesday.

Investors had tendered $75.1 million, or 34.3%, of the company’s $218,549,000 principal amount of 5.4% guaranteed notes due Nov. 1, 2014 and $42.7 million, or 27.1%, of $157,625,000 principal amount of 7.5% guaranteed notes due May 15, 2015, all of which were accepted for purchase.

The tender offer ended at 11:59 p.m. ET on Sept. 15. The offer began Sept. 8.

The company plans to redeem all of the remaining notes on Oct. 16, according to a separate company press release.

For the 5.4% notes, the redemption price will be $1,002.13 for each $1,000 principal amount, representing the sum of par plus accrued interest to the redemption date and the amount of any excess of (x) the aggregate present value as of the redemption date of the par amount and interest that would have been payable, discounted on a semiannual basis at the reinvestment set forth in the notes, determined on the third business day preceding the date of the redemption notice, from the respective dates on which the principal and interest would have been payable if the redemption had not been made, to the redemption date, over (y) the aggregate principal amount of the notes being redeemed.

The 7.5% notes will be redeemed at a redemption price equal to the greater of par and the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed (excluding any interest payments accrued to the redemption date) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of 12 30-day months) at the Treasury rate set forth in the notes determined as of the third business day preceding the redemption date plus 75 basis points, plus accrued interest to the redemption date.

Tender offer pricing, more details

The purchase price per $1,000 principal amount was $1,006.42 for the 5.4% notes and $1,044.18 for the 7.5% notes.

The company also paid accrued interest to but excluding the payment date of Sept. 16.

Global Bondholder Services Corp. (866 470-4500 or 212 430-3774 collect) was the information agent. Wells Fargo Securities, LLC (866 309-6316 or 704 410-4760 collect) was the dealer manager.

Funding for the tender offer payment of $122.7 million came from proceeds of an issue of guaranteed notes, and the offer was conditioned on pricing of the notes.

Brandywine Operating Partnership priced $500 million of guaranteed notes on Sept. 8 in tranches due 2024 and 2029.

The real estate investment trust for office and industrial properties is based in Radnor, Pa.

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