BXP Raises $700 Million at 6.050% to Retire $1 Billion of 2.750% Debt
The new issue covers only part of the October maturity, leaving cash and revolver capacity to close the balance.
September 1, 2026
Boston Properties Limited Partnership, the operating partnership through which BXP, Inc. holds its assets, closed the sale of $700.0 million of 6.050% senior notes due 2036 on August 31, 2026. The proceeds are earmarked for the $1.0 billion of 2.750% senior notes scheduled to mature on October 1, 2026.
A decade of repricing in one transaction
The two coupons frame the deal. Debt raised in the low-rate window that produced the 2.750% notes is being replaced at 6.050%, and that repricing will carry through the next decade of the partnership’s unsecured obligations. For allocators who watch listed office landlords as a read on real estate credit conditions, the terms mark a current clearing price for ten-year unsecured paper from one of the sector’s largest borrowers.
The gap to October
Net proceeds after underwriting discounts and estimated transaction expenses are put at approximately $692.4 million — short of the amount coming due. The partnership plans to fund the remainder from available cash, borrowings under its unsecured revolving line of credit, or both. In the interim it may deploy the proceeds against other debt, including outstanding revolver balances, or hold them in short-term interest-bearing deposit accounts.
Structure and syndicate
The notes were issued under the partnership’s 2002 indenture with The Bank of New York Mellon Trust Company as trustee, as supplemented by Supplemental Indenture No. 27 — an indication of how long the unsecured program has been in continuous use. The offering was registered on Form S-3, with a prospectus supplement filed August 18, 2026, and two weeks separated the underwriting agreement from settlement.
Seven firms served as representatives of the underwriting syndicate:
- J.P. Morgan Securities
- BBVA Securities
- BNY Mellon Capital Markets
- PNC Capital Markets
- TD Securities (USA)
- U.S. Bancorp Investments
- Wells Fargo Securities
Goodwin Procter delivered the legality opinion for the registered securities. Michael E. LaBelle, executive vice president, chief financial officer and treasurer, signed for both registrants.
