$Office Properties Income Trust(OPI)$ With the recent conclusion of the notes exchange, I believe that the company is in better state. Notwithstanding the fact that they still have to refinance the $500mil notes that will be due next year, the approach to getting this round of exchange was ingenious in my opinion. Bond holders collectively took $297.5mil haircut in exchange for higher interest rolled over the next 5 years.
From my calculations, OPI will have to fork out an additional $32mil/year in interest for the next 5 years in exchange for the reduction in their total debt, which is a good piece of business.
If they are able to refinance the remaining $500mil due 2025, I believe that the overhang on the shares will be alleviated to a large extent
*Bullish with a small position on this counter
Modify on 2024-06-22 02:34
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