Office Properties Income Trust announced that it has priced $300 million aggregate principal amount of 9.000% senior secured notes due 2029. The closing is expected to occur on February 12, 2024, subject to the satisfaction of customary closing conditions. The new notes will be guaranteed by certain of OPI?s subsidiaries and secured by first-priority liens on 17 office properties with a gross carrying value of approximately $574 million and a pledge of the equity interests of the subsidiary guarantors.

The net proceeds from the offering, after initial purchaser discounts and estimated offering costs, are expected to be approximately $272 million and will be used, together with borrowings under OPI's secured revolving credit facility, to redeem OPI's 4.250% Senior Unsecured Notes due 2024. The company also announced that it will be providing a notice of early redemption for the 2024 Notes at a redemption price equal to the principal amount of $350 million, plus accrued and unpaid interest to, but excluding, the date of redemption. The redemption date will be March 9, 2024 and the redemption price will be paid on March 11, 2024.

The notice of redemption is conditioned upon the closing of the senior secured notes offering and OPI borrowing under its secured revolving credit facility on or prior to the redemption date. The new notes have not and will not be registered under the Securities Act of 1933, as amended, or any state securities laws or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act or any applicable state securities laws. The new notes will be offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A under the Securities Act and outside the United States only to non-U.S. investors in compliance with Regulation S under the Securities Act.