COPT Announces Expiration of Tender Offer for 3.700% Senior Notes due 2021 & Delivery of Notice of Redemption for Remaining 3...
September 17 2020 - 8:30AM
Business Wire
Corporate Office Properties Trust (“COPT” or the “Company”)
(NYSE: OFC) announced today the expiration of the previously
announced cash tender offer by its operating partnership, Corporate
Office Properties, L.P. (the “Issuer”), for any and all of the
Issuer’s outstanding 3.700% Senior Notes due 2021, CUSIP No.
22003BAJ5, fully and unconditionally guaranteed by COPT (the
“Notes”), on the terms and subject to the conditions set forth in
the Offer to Purchase, dated September 10, 2020 (the “Offer to
Purchase”), and the related Notice of Guaranteed Delivery attached
to the Offer to Purchase (the “Notice of Guaranteed Delivery”). The
tender offer is referred to herein as the “Offer.” The Offer to
Purchase and the Notice of Guaranteed Delivery are referred to
herein collectively as the “Offer Documents.” As of the expiration
of the Offer at 5:00 p.m., New York City time, on September 16,
2020 (the “Expiration Time”), $122,948,000, or 40.98%, of the
$300,000,000 aggregate principal amount of the Notes had been
validly tendered and delivered (and not validly withdrawn),
excluding Notes tendered pursuant to a Notice of Guaranteed
Delivery in the Offer at or prior to the Expiration Time. Payment
for the Notes purchased pursuant to the Offer is intended to be
made on or around September 17, 2020 (the “Settlement Date”), and
payment for the Notes tendered pursuant to a Notice of Guaranteed
Delivery and purchased pursuant to the Offer is intended to be made
on or around September 21, 2020 (the “Guaranteed Delivery
Settlement Date”).
The “Tender Offer Consideration” will be $1,024.45 for each
$1,000 principal amount of Notes, plus accrued and unpaid interest,
if any, up to, but not including, the Settlement Date, payable on
the Settlement Date or the Guaranteed Delivery Settlement Date, as
applicable.
The Offer was made pursuant to the Offer to Purchase and the
Notice of Guaranteed Delivery. Wells Fargo Securities, LLC (“Wells
Fargo”) acted as the dealer manager for the Offer.
Additionally, the Company announced today that the Issuer will
redeem all of the remaining outstanding Notes that were not
tendered in the Offer. The redemption date has been set for October
19, 2020. In accordance with the redemption provisions of the Notes
and the Indenture, dated as of September 16, 2013, by and among the
Issuer, COPT, as guarantor, and U.S. Bank National Association, as
trustee, as supplemented by the second supplemental indenture dated
as of May 21, 2014, under which the Notes were issued (the
“Indenture”), the Notes will be
redeemed at a price calculated pursuant to the terms of the
Indenture, together with accrued and unpaid interest to the
redemption date.
The Offer and redemption will be funded from a portion of the
net proceeds from the previously announced issuance and sale by the
Issuer of its 2.250% Senior Notes due 2026.
This press release shall not constitute an offer to buy or a
solicitation of an offer to sell any Notes. The Offer is being made
solely pursuant to the Offer Documents. The Offer is not being made
to holders of Notes in any jurisdiction in which the making or
acceptance thereof would be unlawful under the securities laws of
any such state or jurisdiction. In any state or jurisdiction in
which the securities laws require the Offer to be made by a
licensed broker or dealer, the Offer will be deemed to be made on
behalf of the Issuer by Wells Fargo Securities or one or more
registered brokers or dealers that are licensed under the laws of
such state or jurisdiction.
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/20200917005273/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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