EX-99.1 2 tm2510925d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

$20M Exchange Scenario and Proposed $95M Exchange

 

Office Properties Income Trust

Liquidity and covenant information

 

2025 Exchange Offer Completed (1)  Q4-24  Q1-25  Q2-25  Q3-25  Q4-25  Q1-26  Q2-26 
Beginning Cash      $261,318  $69,210  $83,246  $43,746  $42,532  $10,492 
Cash flows from operations, net       (29,228)  9,875   (33,000)  5,286   (32,414)  2,853 
Proceeds from sales of properties, net       26,227   78,476   -   69,859   6,874   17,672 
Cash flows from financing, net       (189,107)  (74,315)  (6,500)  (76,359)  (6,500)  (91,109)
Ending Cash  $261,318  $69,210  $83,246  $43,746  $42,532  $10,492  $(60,092)
                              
Repayment of 2027 Secured Notes (amortization and property sales)  $-  $(16,738) $(69,875) $(6,500) $(76,359) $(6,500)    
Cumulative 2027 Secured Notes Repaid  $-  $(16,738) $(86,613) $(93,113) $(169,472) $(175,972)    
                              
Proceeds from sales of unsecured properties  $109,711  $20,708  $10,470  $-  $-  $6,874     
Aggregate proceeds from sales of unsecured properties  $109,711  $130,419  $140,889  $140,889  $140,889  $147,763     
Proceeds in excess of $150M cap to repay 2027 secured notes  $-  $-  $-  $-  $-  $-     

 

2025 Exchange Offer Completed (1)   Q4-24   Q1-25   Q2-25   Q3-25   Q4-25   Q1-26   
Total Adjusted Total Assets      $4,936,899  $4,864,293  $4,538,887  $4,535,265  $4,404,315   
Less: Dispositions       (69,643)  (322,771)  -   (137,311)  (20,225)  
Net Adjusted Total Assets  $4,925,410  $4,867,256  $4,541,522  $4,538,887  $4,397,954  $4,384,090   
Less: Encumbered Assets   (4,083,629)  (4,064,354)  (3,769,069)  (3,783,652)  (3,659,905)  (3,676,105)  
Total Unencumbered Adjusted Total Assets  $841,781  $802,902  $772,453  $755,235  $738,049  $707,985   
Total Unsecured Debt  $497,627  $482,260  $482,260  $482,260  $482,260  $482,260   
Unencumbered Assets / Unsecured Debt Maintenance                           
Covenant (Minimum 150%)   169.2%  166.5%  160.2%  156.6%  153.0%  146.8%  
                            
Consolidated income available for debt service      $262,520  $251,704  $241,718  $227,520  $221,507   
Less: Dispositions       (12,682)  (7,942)  (2,470)  1,657   3,156   
Net Consolidated income available for debt service (CIADS)  $256,058  $249,838  $243,762  $239,248  $229,177  $224,663   
Debt Service per covenant definition  $157,473  $166,701  $166,407  $167,712  $164,520  $163,543   
                            
CIADS / Debt Service incurrence test (Minimum 1.50x)   1.63x  1.50x  1.46x  1.43x  1.39x  1.37x  

 

(1) 2025 Exchange Offer Assumptions:

 

Current Exchange ($ in millions)        
   Existing Notes   Price   New Notes 
2026 Notes  $7   $0.89   $6 
2027 Notes   3   $0.76    2 
2031 Notes   12   $0.56    7 
Total  $21         15 

 

Proposed Exchange ($ in millions)           
    Existing Notes    Price    New Notes 
2026 Notes  $67   $1.00   $67 
2027 Notes   13   $0.76    10 
2031 Notes   15   $0.56    8 
Total  $95         85