RMR Group Facilitates $1 Billion Refinancing for Vertex Pharmaceuticals' Boston HQ

The RMR Group has successfully facilitated a $1.0 billion refinancing for Vertex Pharmaceuticals' headquarters in Boston. The new five-year, interest-only mortgage has a fixed rate of 5.5957% and secures two properties totaling 1.1 million square feet. The refinancing will be used to repay the existing $620 million mortgage, leasing reserves, and cash repatriation. The lease agreement with Vertex has been extended by 15 years until June 2044.

The RMR Group (Nasdaq: RMR) has successfully facilitated a $1.0 billion refinancing for Vertex Pharmaceuticals' headquarters in Boston. The new five-year, interest-only mortgage has a fixed rate of 5.5957% and secures two properties totaling 1.1 million square feet. The refinancing will be used to repay the existing $620 million mortgage, fund leasing reserves, and repatriate cash. The lease agreement with Vertex has been extended by 15 years until June 2044 [1].

Adam Portnoy, President and Chief Executive Officer of RMR, stated, "RMR is pleased to have facilitated this refinancing for our private capital clients following a long-term lease extension by the anchor tenant. This financing allows us to recapitalize the joint venture’s debt at a leverage level appropriate for a well leased, high quality asset, while capitalizing outstanding tenant inducements associated with the lease extension, and securing a competitive fixed interest rate" [1].

The properties leased to Vertex are owned by a joint venture, for which RMR provides asset and property management services. The primary owners of the venture are private institutional investors and Diversified Healthcare Trust (Nasdaq: DHC), an RMR client, owns a 10% equity interest [1]. Morgan Stanley Bank, N.A., Bank of Montreal, Goldman Sachs, and J.P. Morgan provided the financing, represented by Dechert LLP. Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to the borrower in this transaction [1].

References:
1. [1] https://www.marketscreener.com/news/the-rmr-group-announces-1-0-billion-refinancing-of-vertex-pharmaceuticalsa-headquarters-in-boston-ce7c5edcd98ef125