Federal Realty issues $460 million 3.500% exchangeable senior notes due 2031
Federal Realty OP LP, the operating partnership of Federal Realty Investment Trust, issued $460 million of 3.500% exchangeable senior notes due 2031 on August 11, 2026, including $60 million from the exercise of the initial purchasers' option. The notes are unsecured, are not guaranteed by the parent, and can be exchanged into cash and common shares at an initial rate of 7.2179 shares per $1,000 principal amount, about $138.54 per share, which could dilute existing shareholders if exchanged into shares.
Key points
- Notes total $460 million, mature August 15, 2031, and pay 3.500% interest semiannually starting February 15, 2027
- Initial exchange rate of 7.2179 common shares per $1,000 principal, equal to about $138.54 per share; filing cites a maximum of 3,901,260 shares issuable at a maximum exchange rate of 8.4810
- Capped call transactions have a cap price of about $165.07, a 40% premium over the $117.91 NYSE close on August 6, 2026; part of the proceeds funded these transactions
- Remaining net proceeds are intended for debt repayment and general corporate purposes; the parent must file a shelf registration on or before the 90th day after issuance
The filing
Written by AI on Nov 8, 2026, 12:56 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on August 11, 2026.
Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.