Office Properties Income Trust OPI surged 44.74% to close at $1.65 on Monday following its announcement of a private exchange agreement to address its 2025 debt maturities.
What Happened: After-hours trading saw the stock rise an additional 3.64% to $1.71. Despite the day’s strong performance, OPI remains down 76.83% year-to-date, according to data from Benzinga Pro.
The agreement allows OPI to refinance up to $340 million of its $453.6 million outstanding senior unsecured notes due 2025 through the issuance of new senior secured notes due 2027, coupled with cash and equity considerations. The remaining $113.6 million of the 2025 notes will be settled with cash.
Brian Donley, OPI’s CFO, called the deal “an important milestone” in addressing the company’s financial challenges. The new 2027 notes will carry a 3.25% interest rate, secured by liens on 54 properties valued at approximately $2 billion.
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