Corporate Office Properties (COPLP), the operating partnership of Corporate Office Properties Trust (NYSE:OFC) priced its underwritten public offering of $400M of 2.250% senior notes due 2026.
The Company also commenced a cash tender offer to purchase any and all of (COPLP) 3.700% Senior Notes due 2021.
Net proceeds from the Offering will be used to fund the redemption of all of (COPLP) 2021 Notes not purchased in the Tender Offer and with the expected purchase or redemption of the 2021 Notes, the Company expects to incur ~$9M of losses on the early extinguishment of the debt.
The company modified the guidance for Q3, Q4 & FY 2020.
Diluted EPS is modified to between ($0.38)-($0.36) from prior guidance of $0.16-$0.18 for Q3, between $0.43-$0.45 from prior guidance of $0.17-$0.19 for Q4 and between $0.48-$0.52 from prior guidance of $0.76 and $0.80 for FY2020.
FFO is modified to between $($0.03)-($0.01) from prior guidance of $0.51-$0.53 for Q3, between $0.52-$0.54 no change from prior guidance for Q4 and between $1.41-$1.45 from prior guidance of $2.05 and $2.09 for FY2020.
