Boston Properties Completes Refinancing of 767 Fifth Avenue in New York City
June 07 2017 - 5:31PM
Business Wire
Boston Properties, Inc. (NYSE: BXP), a real estate investment
trust, announced today that its consolidated joint venture entity
in which it has a 60% interest and that owns 767 Fifth Avenue (the
General Motors Building) located in New York City, completed the
refinancing of approximately $1.6 billion of indebtedness that had
been secured by direct and indirect interests in 767 Fifth Avenue.
The new mortgage financing has a principal amount of $2.3 billion,
bears interest at a fixed interest rate of 3.43% per annum and
matures on June 9, 2027. The loan requires interest-only payments
during the 10-year term of the loan, with the entire principal
amount being due at maturity.
In contemplation of the refinancing, on April 24, 2017, the
consolidated joint venture entity terminated forward-starting
interest rate swap contracts with notional amounts aggregating
$450.0 million and paid approximately $14.4 million, which amount
will increase the Company's interest expense over the ten-year term
of the financing, resulting in an effective GAAP interest rate of
approximately 3.64% per annum (including the amortization of
financing costs and additional mortgage recording tax).
After extinguishing the existing indebtedness on the property,
the Company intends to use a portion of its share of the net
proceeds to repay the $310.0 million of borrowings outstanding
under its $1.5 billion unsecured line of credit and for other
working capital purposes. The extinguished debt bore interest at a
weighted-average rate of approximately 5.96% per annum, an
effective GAAP interest rate of approximately 3.03% per annum and
was scheduled to mature on October 7, 2017. There was no prepayment
penalty associated with the repayment of the prior indebtedness on
the property.
Boston Properties is a fully integrated real estate investment
trust that develops, redevelops, acquires, manages, operates and
owns a diverse portfolio of primarily Class A office space totaling
47.7 million square feet and consisting of 164 office properties
(including six properties under construction), five retail
properties, four residential properties (including two properties
under construction) and one hotel. The Company is one of the
largest owners and developers of Class A office properties in the
United States, concentrated in five markets - Boston, Los Angeles,
New York, San Francisco and Washington, DC.
For more information about Boston Properties, please visit the
Company’s web site at www.bostonproperties.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170607006436/en/
Boston Properties, Inc.Mike LaBelle, 617-236-3352Executive Vice
PresidentChief Financial OfficerorArista Joyner,
617-236-3343Investor Relations Manager
Boston Properties (NYSE:BXP)
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