Office Properties note deal buys time to sell assets, says B. Riley

B. Riley keeps a Buy rating on Office Properties (OPI) Income Trust after the company entered into an exchange agreement with certain holders of its remaining $453.6M 2025 senior unsecured notes. The deal buys the company substantial time to sell assets to pay off debt, potentially including 20 Mass Ave. in Washington, D.C., the analyst tells investors in a research note. Riley says the deal is structured in such a way as to not trip up debt covenants, at least in the near term. Riley believes the deal eliminates the “material overhang” on Office Properties regarding the upcoming 2025 debt maturity, “although at a substantial cost.”