Boston Properties Reduces Debt

Boston Properties Inc. (BXP - Analyst Report), a real estate investment trust (REIT), has recently raised net proceeds of approximately $694 million by selling 5.875% senior unsecured notes due 2019.

The debt offering was managed by Bank of America Securities LLC, the investment banking arm of Bank of America Corp. (BAC - Analyst Report), Citigroup Global Markets Inc., the brokerage and securities arm of Citigroup Inc. (C - Analyst Report) and Deutsche Bank Securities Inc., the U.S. investment banking and securities arm of the German banking colossus Deutsche Bank AG (DB - Snapshot Report).

The senior unsecured notes were priced at 99.931% of the principal amount to yield 5.884% to maturity. Boston Properties plan to utilize the proceeds to reduce its huge debt. At the end of the second quarter, the company had about $6 billion in debt maturing by 2015.

Boston Properties develops, redevelops, acquires, manages, operates, and owns a diverse portfolio of Class A office, industrial, and hotel properties in the U.S. The majority of the company’s income comes from office properties, which are primarily concentrated in large, high-barrier urban markets that usually fare better in a faltering economy.