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 (the “Offering”) of $600
million of 2.750% Senior Notes due 2031 (the “2031 Notes”). The
Company will fully and unconditionally guarantee the Operating
Partnership’s obligations under the 2031 Notes. The Offering is
expected to close on March 11, 2021, subject to customary closing
conditions.
Wells Fargo Securities, LLC, Barclays Capital Inc., BofA
Securities, Inc., Citigroup Global Markets Inc., Capital One
Securities, Inc., J.P. Morgan Securities LLC, KeyBanc Capital
Markets Inc., and PNC Capital Markets LLC are acting as joint
book-running managers for the Offering. Additionally, M&T
Securities, Inc., Regions Securities LLC, TD Securities (USA) LLC,
and U.S. Bancorp Investments, Inc. are acting as co-managers for
the Offering.
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 3.600% Senior Notes due 2023, fully and
unconditionally guaranteed by the Company (the “2023 Notes”), and
any and all of the Operating Partnership’s 5.250% Senior Notes due
2024, fully and unconditionally guaranteed by the Company (the
“2024 Notes”), pursuant to tender offers being announced separately
today, by redemption or otherwise. 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 and other debt
repurchases.
The 2031 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, by calling 1-800-645-3751, or by emailing
wfscustomerservice@wellsfargo.com; Barclays Capital Inc., c/o
Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood,
NY 11717, by calling 1-888-603-5847, or by emailing
barclaysprospectus@broadridge.com; BofA Securities, Inc.,
NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte, NC
28255-0001, Attn: Prospectus Department, by calling 1-800-294-1322,
or by emailing dg.prospectus_requests@bofa.com; or Citigroup Global
Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island
Avenue, Edgewood, NY 11717, by calling 1-800-831-9146, or by
emailing prospectus@citi.com. You may also get these documents for
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.
2021 Guidance
The Company is maintaining its previously established guidance
for funds from operations per share (“FFOPS”), as adjusted for
comparability, for the first quarter ending March 31, 2021, and the
year ending December 31, 2021. At a future time, the Company
intends to file with the Securities and Exchange Commission a
Current Report on Form 8-K to update its guidance for earnings per
share (“EPS”) and FFOPS, as defined by Nareit, for the same time
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 December 31, 2020, the Company derived
87% of its core portfolio annualized rental revenue from Defense/IT
Locations and 13% from its Regional Office Properties. As of the
same date and including 17 properties owned through unconsolidated
joint ventures, COPT’s core portfolio of 179 office and data center
shell properties encompassed 20.8 million square feet and was 95.0%
leased; the Company also owned one wholesale data center with a
critical load of 19.25 megawatts that was 86.7% 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, 2020.
Source: Corporate Office Properties Trust
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210303005993/en/
IR: Stephanie Krewson-Kelly 443-285-5453
stephanie.kelly@copt.com
Michelle Layne 443-285-5452 michelle.layne@copt.com
Corporate Office Propert... (NYSE:OFC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Corporate Office Propert... (NYSE:OFC)
Historical Stock Chart
From Apr 2023 to Apr 2024