OPI Reports New Material Definitive Agreement, Financial Obligation

TL;DR

**OPI just took on new debt or changed existing debt, watch for impact on financials.**

AI Summary

Office Properties Income Trust (OPI) filed an 8-K on January 30, 2024, reporting an event on January 29, 2024, related to a material definitive agreement and the creation of a direct financial obligation. This filing indicates OPI is likely taking on new debt or modifying existing debt, specifically mentioning "Senior Unsecured Notes 6.375 Percent Due In 2050." For investors, this matters because changes in debt obligations, especially new ones, can impact the company's financial health, interest expenses, and ultimately, its profitability and ability to pay dividends, potentially affecting stock value.

Why It Matters

This filing signals that Office Properties Income Trust is entering into or modifying significant financial agreements, which could affect its debt levels, interest payments, and overall financial stability.

Risk Assessment

Risk Level: medium — The filing indicates new financial obligations, which can introduce both opportunities and risks depending on the terms and the company's ability to manage the debt.

Analyst Insight

A smart investor would monitor Office Properties Income Trust's upcoming financial statements and earnings calls for specific details on the size and full terms of this new financial obligation, as it will impact future interest expenses and cash flow.

Key Numbers

• 6.375% — Interest Rate (Interest rate on the Senior Unsecured Notes due in 2050)
• 2050 — Maturity Year (Maturity year for the Senior Unsecured Notes)

Key Players & Entities

• OFFICE PROPERTIES INCOME TRUST (company) — the registrant filing the 8-K
• January 29, 2024 (date) — date of the earliest event reported
• January 30, 2024 (date) — date the 8-K was filed
• Senior Unsecured Notes 6.375 Percent Due In 2050 (other) — specific financial instrument mentioned

Forward-Looking Statements

• Office Properties Income Trust's interest expenses will increase due to the new financial obligation. (OFFICE PROPERTIES INCOME TRUST) — medium confidence, target: Q1 2024 Earnings Report
• Further details regarding the terms and amount of the new financial obligation will be disclosed in subsequent filings or earnings calls. (OFFICE PROPERTIES INCOME TRUST) — high confidence, target: Next 10-Q filing

FAQ

Key Financial Figures

• $325.0 million — syndicate of other lenders, governing a $325.0 million secured revolving credit facility and a
• $100.0 million — secured revolving credit facility and a $100.0 million secured term loan. The Credit Agreement
• $750.0 million — Credit Agreement replaces our previous $750.0 million unsecured revolving credit facility, wh
• $132.0 million — ed the full amount of the term loan and $132.0 million under the revolving credit facility. We
• $941.9 million — operties with a gross carrying value of $941.9 million. In connection with the Credit Agreemen
• $0.01 — ibution rate above the current level of $0.01 per common share per quarter. Availabil

Filing Documents

• tm244328d1_8k.htm (8-K) — 39KB
• tm244328d1_ex10-1.htm (EX-10.1) — 1066KB
• tm244328d1_ex10-2.htm (EX-10.2) — 171KB
• tm244328d1_ex10-3.htm (EX-10.3) — 129KB
• tm244328d1_ex10-1001.jpg (GRAPHIC) — 2KB
• 0001104659-24-007865.txt ( ) — 1919KB
• opi-20240129.xsd (EX-101.SCH) — 3KB
• opi-20240129_def.xml (EX-101.DEF) — 26KB
• opi-20240129_lab.xml (EX-101.LAB) — 36KB
• opi-20240129_pre.xml (EX-101.PRE) — 25KB
• tm244328d1_8k_htm.xml (XML) — 5KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. On January 29, 2024, we and certain of our subsidiaries entered into a second amended and restated credit agreement, or the Credit Agreement, with Wells Fargo Bank, National Association, as administrative agent and a lender, and a syndicate of other lenders, governing a $325.0 million secured revolving credit facility and a $100.0 million secured term loan. The Credit Agreement replaces our previous $750.0 million unsecured revolving credit facility, which had a maturity date of January 31, 2024. The maturity date of the Credit Agreement is January 29, 2027. Subject to the payment of an extension fee and meeting certain other conditions, we have an option to further extend the stated maturity date of the new revolving credit facility by one additional twelve-month period. We can borrow, repay and reborrow funds available under the new revolving credit facility until maturity thereof, and no principal repayment on borrowings under the Credit Agreement is due until maturity thereof. On January 29, 2024, we borrowed the full amount of the term loan and $132.0 million under the revolving credit facility. We used the proceeds from these borrowings to repay all outstanding borrowings under our previous revolving credit facility, to fund transaction related costs relating to the Credit Agreement and for general business purposes. Interest payable on borrowings under the Credit Agreement is based on SOFR plus a margin of 3.50%. The Credit Agreement is secured by 19 properties with a gross carrying value of $941.9 million. In connection with the Credit Agreement, certain of our subsidiaries, or the Pledgors, entered into pledge agreements in favor of Wells Fargo Bank, National Association, in its capacity as administrative agent, or the Pledge Agreements. Pursuant to the Pledge Agreements, t

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. 10.1 Second Amended and Restated Credit Agreement, dated January 29, 2024, among OPI WF Borrower LLC, as borrower, OPI WF Holding LLC, as holdings, the Company, as parent and outgoing borrower, Wells Fargo Bank, National Association, as Administrative Agent, and each of the other institutions party thereto. (Filed herewith.) 10.2 Pledge Agreement, dated as of January 29, 2024, among certain subsidiaries of the Company party thereto and Wells Fargo Bank, National Association, as Collateral Agent. (Filed herewith.) 10.3 Pledge Agreement, dated as of January 29, 2024, between OPI WF Holding LLC and Wells Fargo Bank, National Association, as Collateral Agent. (Filed herewith.) 104 Cover Page Interactive Data File. (Embedded within the Inline XBRL document.)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. OFFICE PROPERTIES INCOME TRUST By: /s/ Brian E. Donley Name: Brian E. Donley Title: Chief Financial Officer and Treasurer Dated: January 29, 2024

View Full Filing

View this 8-K filing on SEC EDGAR