Boston Properties Limited Partnership, the operational arm of BXP, Inc., has announced a significant amendment and restatement of its revolving credit agreement, now referred to as the 2025 Credit Facility. This strategic financial move, effective March 28, 2025, enhances the company's borrowing capacity and extends its financial flexibility.
The 2025 Credit Facility allows for aggregate borrowings of up to $2.950 billion, comprising an unsecured revolving credit facility and an unsecured term loan facility. Key changes include an increase in the revolving line of credit from $2.0 billion to $2.250 billion and an extension of the maturity date to March 29, 2030. Additionally, a new $700 million unsecured term loan facility has been introduced, maturing on March 30, 2029, with options for two six-month extensions.
Boston Properties has also secured the option to increase the total commitment under the 2025 Credit Facility to a maximum of $3.5 billion, subject to certain conditions. At the closing of this agreement, the company drew the full $700 million from the Term Loan Facility to repay existing borrowings, leaving a $300 million outstanding balance under the Revolving Facility.
The interest rates for loans under this facility are tied to the company's credit rating, with competitive margins for both SOFR-based and Base Rate loans. The facility also includes customary covenants and conditions, ensuring Boston Properties maintains a robust financial structure.
In conjunction with the new credit facility, Boston Properties has increased its commercial paper program capacity by $250 million, bringing the total to $750 million, further supported by the 2025 Credit Facility.
This strategic financial restructuring underscores Boston Properties' commitment to maintaining strong liquidity and financial flexibility, positioning the company for continued growth and stability in the real estate market.
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