Newton, MA-based HRPT Properties Trust (NYSE: HRP) announced today that the company has priced an underwritten public offering of $125 million of 7.50% unsecured Senior Notes due 2019. The underwriters have also been granted a 30-day option to purchase up to an additional $18.75 million of the Senior Notes to cover over allotments, if any. While circumstances could change, the settlement of this sale is expected to occur on November 25, 2009.
Standard & Poor's Rating Services and Moody's Investors Service have maintained ratings of BBB (stable) and Baa2 (stable), respectively, on HRP senior unsecured debt. Such ratings are always subject to revision or withdrawal by the ratings agencies. As of September 30, 2009, HRP had book value total assets of approximately $6 billion and book value total liabilities of about $3 billion.
HRP intends to use the net proceeds of this offering to reduce amounts outstanding under its $750 million revolving credit facility, which matures on August 22, 2010. As of November 16, 2009, the revolving credit facility had an outstanding balance of approximately $381 million.
HRPT Properties Trust is a real estate investment trust, or REIT, which primarily owns office and industrial buildings located throughout the United States. As of November 18, 2009, HRP owned 517 operating properties with 66.8 million square feet located in 34 states and Washington, DC.
In Metro Boston, HRP owned 19 office properties as of September 30, 2009, which accounted for approximately 6% of HRP rental income during the third quarter of 2009. In the most recent Supplemental Data report, HRP indicated that the Metro Boston properties were 83% leased as of the end of 3Q2009, down 2.1% from 85.1% as of September 30, 2008.
HRP’s total portfolio reported a higher occupancy, at 88% leased as of the end of 3Q2009, down 2.6% from 90.6% a year ago. During each of the next four years (i.e., 2010 through 2013), leases representing in between 11% and 12% of total annualized rental income are scheduled to expire. HRPT Properties Trust is externally managed by Reit Management & Research LLC, also based in Newton, MA.
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