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BOSTON - BXP, Inc. (NYSE:BXP), the largest publicly traded developer and owner of premier workplaces in the United States, with a market capitalization of $13.47 billion, announced Wednesday that its operating partnership intends to offer $600 million in exchangeable senior notes due 2030, subject to market conditions. According to InvestingPro analysis, BXP appears slightly undervalued based on its Fair Value metrics, while maintaining a 29-year track record of consistent dividend payments.
The notes will be offered in a private placement to qualified institutional buyers under Rule 144A of the Securities Act. Boston Properties Limited Partnership (BPLP) also expects to grant initial purchasers a 13-day option to purchase up to an additional $90 million in notes. This debt offering comes at a time when InvestingPro data shows the company’s current ratio at 0.89, indicating its short-term obligations exceed liquid assets.
The senior unsecured notes will mature on October 1, 2030, unless earlier repurchased, exchanged or redeemed. Interest will be payable semi-annually, with noteholders having the right to exchange their notes under certain circumstances.
BXP plans to enter into capped call transactions with financial institutions to reduce potential dilution to its common stock upon any exchange of notes. These transactions are expected to cover the number of shares initially underlying the notes, subject to customary adjustments.
The company intends to use the net proceeds to fund the capped call transactions and to partially repay or redeem its $1 billion in 3.650% senior notes due February 2026. The remaining funds needed for the 2026 notes will come from available cash or borrowings under its revolving credit facility.
The interest rate, initial exchange rate and other terms will be determined during the pricing of the offering.
The notes and any shares deliverable upon exchange have not been registered under the Securities Act and cannot be offered or sold except pursuant to an exemption from registration requirements.
As of June 30, 2025, BXP’s portfolio included 186 properties totaling 53.7 million square feet across six markets: Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. The company has demonstrated steady growth with revenues of $3.41 billion and a year-over-year revenue growth of 2.91%. For deeper insights into BXP’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro, which offers exclusive access to detailed Pro Research Reports covering over 1,400 US stocks.
This article is based on a press release statement from BXP.
In other recent news, Boston Properties Inc. has been the focus of several analyst updates following its tri-annual Investor Day. Piper Sandler maintained an Overweight rating on the company, highlighting Boston Properties’ plan to sell nearly $2 billion in assets, a move that significantly exceeds initial expectations. Meanwhile, KeyBanc reiterated its Sector Weight rating, noting the company’s strategic roadmap through 2027, which includes leasing additional space and focusing on existing properties. Truist Securities raised its price target to $77, maintaining a Hold rating, citing the company’s focus on trophy properties. BMO Capital adjusted its price target to $84, noting management’s optimism about occupancy growth. UBS also increased its price target to $74, while keeping a Neutral rating, emphasizing the company’s strategy for occupancy gains and balance sheet improvement. These developments reflect a diverse range of analyst perspectives on Boston Properties’ future prospects.
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