Curbline Properties Corp. and Curbline Properties LP Secures $150 Million in Unsecured Senior Notes Through Private Placement to Institutional Investors

Published: 2025-06-26 08:20:36 ET CURB

Published on 06/26/2025 at 08:20

On June 26, 2025, Curbline Properties Corp. and its subsidiary, Curbline Properties LP entered into a Note and Guaranty Agreement in connection with a private placement of $150 million of the Operating Partnership?s unsecured senior notes consisting of (i) $100 million aggregate principal amount of 5.58% unsecured senior notes due September 3, 2030 and (ii) $50 million aggregate principal amount of 5.87% unsecured senior notes due September 3, 2032, to a group of institutional investors. The Operating Partnership also entered into an interest rate lock agreement resulting in a 5.79% effective interest rate on the notes due September 3, 2032 and a weighted average coupon of 5.65%.

The Notes bear interest on the outstanding principal balance at the stated rates per annum from the date of issuance, payable semi-annually in arrears on March 3 and September 3 of each year, until such principal becomes due and payable. The entire unpaid principal balance of each Note shall be due and payable on the maturity date thereof. The Notes are senior unsecured obligations of the Operating Partnership and rank equal in right of payment with all other senior unsecured indebtedness of the Operating Partnership.

The Notes are unconditionally guaranteed by the Company. The Operating Partnership will be permitted to prepay the outstanding Notes in whole or in part, in an amount not less than 5% of the aggregate principal amount of the Notes then outstanding, at any time at (i) 100% of the principal amount so prepaid, plus (ii) the Make-Whole Amount, which is equal to the excess, if any, of the discounted value of the remaining scheduled principal and interest payments with respect to the Notes being prepaid over the principal amount of such Notes. If a change in control occurs for the Company, the Operating Partnership must offer to prepay the outstanding Notes.

The prepayment amount will be 100% of the principal amount, as well as accrued and unpaid interest but without any Make-Whole Amount. The Note Agreement contains certain customary covenants including, among other things, a maximum total leverage ratio, a maximum secured leverage ratio, a maximum unencumbered leverage ratio, a minimum fixed charge coverage ratio and a minimum unsecured interest coverage ratio. The sale and purchase of the Notes is scheduled to occur on September 3, 2025, subject to customary closing conditions.

The Operating Partnership intends to use the net proceeds from the issuance of the Notes for general corporate purposes, including funding future acquisitions.