Office Properties Income Trust Successfully Completes Financial Restructuring
Office Properties Income Trust (OPI) announced that it has successfully completed its financial restructuring and has emerged from Chapter 11. OPI achieved its objectives to strengthen its balance sheet, reduce debt, and position the Company for long-term operational stability. Pursuant to OPI's Chapter 11 Plan of Reorganization confirmed by the U.S. Bankruptcy Court for the Southern District of Texas on April 22, 2026, OPI entered into the following transactions: OPI's $425 million revolving credit facility has been amended and restated and bears interest at 9.1%, and its $300 million of 9.0% Senior Secured Notes due March 2029 and $177 million of mortgage debt have been reinstated. Holders of OPI's 3.25% Senior Secured Notes due March 2027 received approximately $385 million of newly issued 8.375% senior secured notes due December 2029 which require principal payments of $20 million in 2026, $30 million in 2027, $45 million in 2028, and $45 million in 2029, with the balance due at maturity. Holders of OPI's 9.0% Senior Secured Notes due September 2029 received approximately $420 million of newly issued 10.0% senior secured notes due June 2031 and newly issued common shares. Holders of OPI's 8.0% senior priority guaranteed notes received newly issued common shares. OPI's other unsecured noteholders received newly issued common shares and warrants to purchase additional common shares and rights to participate in a $35 million equity rights offering. Through the restructuring, OPI has reduced its debt by approximately $714 million. All previously outstanding common shares were canceled upon emergence, and trade and operational creditors will receive payment in full. The post-restructuring balance sheet includes $1.7 billion of debt and approximately 22 million newly issued common shares. A significant portion of the Company's common shares are now owned by its noteholders, including affiliates of Helix Partners Management LP and Redwood Capital Management, LLC, among others. OPI's newly issued common shares are expected to begin trading on June 18, 2026 on the Nasdaq under the symbol "OPI." The RMR Group (RMR) will continue to manage OPI post-emergence under new five-year business management and property management agreements. Yael Duffy will continue to serve as President and Chief Executive Officer and Brian Donley will continue to serve as Chief Financial Officer of OPI.
