BOSTON--(BUSINESS WIRE)--Jun. 7, 2017--
Properties, Inc. (NYSE: BXP), a real estate investment trust,
announced today that its consolidated joint venture entity in which it
has a 60% interest and that owns 767 Fifth Avenue (the General Motors
Building) located in New York City, completed the refinancing of
approximately $1.6 billion of indebtedness that had been secured by
direct and indirect interests in 767 Fifth Avenue. The new mortgage
financing has a principal amount of $2.3 billion, bears interest at a
fixed interest rate of 3.43% per annum and matures on June 9, 2027. The
loan requires interest-only payments during the 10-year term of the
loan, with the entire principal amount being due at maturity.
In contemplation of the refinancing, on April 24, 2017, the consolidated
joint venture entity terminated forward-starting interest rate swap
contracts with notional amounts aggregating $450.0 million and paid
approximately $14.4 million, which amount will increase the Company's
interest expense over the ten-year term of the financing, resulting in
an effective GAAP interest rate of approximately 3.64% per annum
(including the amortization of financing costs and additional mortgage
After extinguishing the existing indebtedness on the property, the
Company intends to use a portion of its share of the net proceeds to
repay the $310.0 million of borrowings outstanding under its $1.5
billion unsecured line of credit and for other working capital purposes.
The extinguished debt bore interest at a weighted-average rate of
approximately 5.96% per annum, an effective GAAP interest rate of
approximately 3.03% per annum and was scheduled to mature on October 7,
2017. There was no prepayment penalty associated with the repayment of
the prior indebtedness on the property.
Boston Properties is a fully integrated real estate investment trust
that develops, redevelops, acquires, manages, operates and owns a
diverse portfolio of primarily Class A office space totaling 47.7
million square feet and consisting of 164 office properties (including
six properties under construction), five retail properties, four
residential properties (including two properties under construction) and
one hotel. The Company is one of the largest owners and developers of
Class A office properties in the United States, concentrated in five
markets - Boston, Los Angeles, New York, San Francisco and Washington,
For more information about Boston Properties, please visit the Company’s
web site at www.bostonproperties.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170607006436/en/
Source: Boston Properties, Inc.
Boston Properties, Inc.
Mike LaBelle, 617-236-3352
Chief Financial Officer
Investor Relations Manager