By Cristal Cody
Tupelo, Miss., Sept. 10 – Corporate Office Properties, LP sold $400 million of 2.25% guaranteed senior notes due March 15, 2026 (Baa3/BBB-/BBB-) on Thursday at 99.416 to yield 2.364%, or a spread of 210 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes priced tighter than guidance at Treasuries plus the 225 bps area, plus or minus 5 bps.
The deal was upsized from $350 million.
Bookrunners were Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, Barclays, BofA Securities, Inc., Citigroup Global Markets Inc. and KeyBanc Capital Markets Inc.
Corporate Office held fixed income investor calls on Wednesday for the offering.
The bonds are guaranteed by Corporate Office Properties Trust.
Proceeds will be used to fund a tender offer for the company’s 2021 notes.
The real estate investment trust for suburban office properties is based in Columbia, Md.
| Issuer: | Corporate Office Properties, LP
|
| Guarantor: | Corporate Office Properties Trust
|
| Amount: | $400 million
|
| Description: | Senior notes
|
| Maturity: | March 15, 2026
|
| Bookrunners: | Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, Barclays, BofA Securities, Inc., Citigroup Global Markets Inc. and KeyBanc Capital Markets Inc.
|
| Senior co-managers: | Capital One Securities, Inc., Jefferies LLC and Regions Securities LLC
|
| Co-managers: | M&T Securities, Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
|
| Coupon: | 2.25%
|
| Price: | 99.416
|
| Yield: | 2.364%
|
| Spread: | Treasuries plus 210 bps
|
| Call features: | Make-whole call before Feb. 15, 2026 at Treasuries plus 35 bps; thereafter at par
|
| Trade date: | Sept. 10
|
| Settlement date: | Sept. 17
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 225 bps area, plus or minus 5 bps; initial talk at Treasuries plus 262.5 bps area
|
| Marketing: | Fixed income investor calls
|
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