Corporate Office Properties Prices $400 Million of 2.250% Senior Notes due 2026
September 10 2020 - 5:00PM
Business Wire
Corporate Office Properties Trust (“COPT” or the “Company”)
(NYSE: OFC) announced that its operating partnership, Corporate
Office Properties, L.P. (“COPLP” or the “Operating Partnership”),
priced an underwritten public offering of $400 million of 2.250%
Senior Notes due 2026 (the “2026 Notes” or the “Offering”). The
Company will fully and unconditionally guarantee the Operating
Partnership’s obligations under the 2026 Notes. The Offering is
expected to close on September 17, 2020, subject to customary
closing conditions.
Wells Fargo Securities, LLC, J.P. Morgan Securities LLC,
Barclays Capital Inc., BofA Securities, Inc., Citigroup Global
Markets Inc., and KeyBanc Capital Markets Inc. are acting as joint
book-running managers for the Offering. Capital One Securities,
Inc., Jefferies LLC, and Regions Securities LLC are acting as
senior co-managers. M&T Securities, Inc., TD Securities (USA)
LLC, and U.S. Bancorp Investments, Inc. are acting as
co-managers.
The Operating Partnership intends to use the net proceeds from
the Offering to fund the purchase of any and all of the Operating
Partnership’s 3.700% Senior Notes due 2021, fully and
unconditionally guaranteed by the Company (the “2021 Notes”),
pursuant to a tender offer announced separately today, by
redemption or otherwise, and the balance of net proceeds, if any,
will be used for general corporate purposes, including, without
limitation, paying down amounts outstanding on the Operating
Partnership’s revolving credit facility. To the extent the tender
offer announced separately today is not consummated or not
subscribed in full, the Operating Partnership intends to use the
net proceeds from the Offering to finance a portion of the
repurchase or redemption of all of the 2021 Notes.
The 2026 Notes will be issued pursuant to a prospectus
supplement and an accompanying prospectus filed as part of an
effective shelf registration statement filed with the Securities
and Exchange Commission on Form S-3. A written prospectus and
prospectus supplement relating to the Offering, when available, may
be obtained by contacting Wells Fargo Securities, LLC, 608 2nd
Avenue South, Suite 1000 Minneapolis, MN 55402 Attn: WFS Customer
Service, telephone: 1-800-645-3751, or by emailing
wfscustomerservice@wellsfargo.com; J.P. Morgan Securities LLC, at
383 Madison Ave, New York, NY 10179 Attn: Investment Grade
Syndicate Desk, telephone: 1-212-834-6081. You may also get these
documents free by visiting EDGAR on the SEC website at
www.sec.gov.
This press release is for informational purposes only and shall
not constitute an offer to sell or the solicitation of an offer to
buy any securities nor shall there be any sale of these securities
in any state or other jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities, blue sky or other laws of any
such state or other jurisdiction.
2020 Guidance
The Company is filing with the Securities and Exchange
Commission on the date hereof a Current Report on Form 8-K to
update its guidance for earnings per share (EPS) and funds from
operations per share (FFOPS), as defined by Nareit, for the third
and fourth quarters of and full-year 2020. The Company is
maintaining its guidance for FFOPS, as adjusted for comparability,
for such periods.
About COPT
COPT is a REIT that owns, manages, leases, develops and
selectively acquires office and data center properties. The
majority of its portfolio is in locations that support the United
States Government and its contractors, most of whom are engaged in
national security, defense and information technology (“IT”)
related activities servicing what it believes are growing, durable,
priority missions (“Defense/IT Locations”). The Company also owns a
portfolio of office properties located in select urban/urban-like
submarkets in the Greater Washington, DC/Baltimore region with
durable Class-A office fundamentals and characteristics (“Regional
Office Properties”). As of June 30, 2020, the Company derived 88%
of its core portfolio annualized rental revenue from Defense/IT
Locations and 12% from its Regional Office Properties. As of the
same date and including 15 properties owned through unconsolidated
joint ventures, COPT’s core portfolio of 172 office and data center
shell properties encompassed 19.6 million square feet and was 94.7%
leased; the Company also owned one wholesale data center with a
critical load of 19.25 megawatts that was 90.6% leased.
Forward-Looking
Information
This press release may contain “forward-looking” statements, as
defined in Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934, that are based on the
Company’s current expectations, estimates and projections about
future events and financial trends affecting the Company.
Forward-looking statements can be identified by the use of words
such as “may,” “will,” “should,” “could,” “believe,” “anticipate,”
“expect,” “estimate,” “plan” or other comparable terminology.
Forward-looking statements are inherently subject to risks and
uncertainties, many of which the Company cannot predict with
accuracy and some of which the Company might not even anticipate.
Although the Company believes that the expectations, estimates and
projections reflected in such forward-looking statements are based
on reasonable assumptions at the time made, the Company can give no
assurance that these expectations, estimates and projections will
be achieved. Future events and actual results may differ materially
from those discussed in the forward-looking statements and the
Company undertakes no obligation to update or supplement any
forward-looking statements.
The areas of risk that may affect these expectations, estimates
and projections include, but are not limited to, those risks
described in Item 1A of the Company’s Annual Report on Form 10-K
for the year ended December 31, 2019 and subsequent Quarterly
Reports on Form 10-Q.
Source: Corporate Office Properties Trust
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version on businesswire.com: https://www.businesswire.com/news/home/20200910005999/en/
IR Contacts: Stephanie Krewson-Kelly 443-285-5453
stephanie.kelly@copt.com
Michelle Layne 443-285-5452 michelle.layne@copt.com
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