NEWTON, Mass.--(BUSINESS WIRE)--Office Properties Income Trust ("OPI" or the "Company") today 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:
Treatment of Debt Claims
• 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 (Nasdaq: 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.
In connection with its emergence from Chapter 11, OPI has formed a new Board of Directors (the "Board") for the Company comprised of senior executives with deep investing and operating experience in the global real estate industry. The Board includes Jonathan Heller (Founder and Chief Executive Officer of Helix Partners Management LP), who will serve as Chairman, Jonathan Kolatch (Founder and Principal at Jasper Lake, LLC), Irvin Schlussel (Chief Investment Officer at the Diamond Family Office), William Lamkin (Former Partner in Ackrell Capital), and Adam Portnoy (President and Chief Executive Officer of RMR).
"We are pleased to have successfully guided OPI through its complex financial restructuring. Working closely with management and the Company's creditors, we strengthened OPI's capital structure and significantly reduced its debt burden," said Jonathan Heller.
Sean Sauler and Ruben Kliksberg, Co-Chief Investment Officers at Redwood Capital Management, one of OPI's largest pre-petition creditors and a post-emergence shareholder, shared, "We are proud to have supported OPI through a complex restructuring that leaves the Company, and its high-quality office portfolio, in a significantly delevered and more flexible capital structure."
Additional Information
Court filings and other documents related to OPI's completed financial restructuring are available on a website administrated by OPI's claims and noticing agent, Kroll Restructuring Administration LLC, at https://restructuring.ra.kroll.com/OPI; by calling Kroll toll-free at (877) 418-2778, or +1 (646) 825-3871 for calls originating outside of the U.S. or Canada; or by emailing Kroll at OPIinfo@ra.kroll.com.
Advisors
Latham & Watkins LLP, Hunton Andrews Kurth LLP, and Sullivan & Worcester LLP served as legal counsel to OPI, Moelis & Company LLC served as investment banker, AP Services, LLC (an affiliate of AlixPartners) served as restructuring advisor, Joele Frank, Wilkinson Brimmer Katcher served as strategic communications advisor, and Kroll Restructuring Administration LLC served as claims, noticing and solicitation agent.
About Office Properties Income Trust
OPI is a national REIT focused on owning and leasing office properties to high credit quality tenants in markets throughout the United States. OPI's property portfolio consists of 122 wholly owned properties located in 29 states and the District of Columbia, containing approximately 17.1 million rentable square feet. OPI is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $37 billion in assets under management as of March 31, 2026, and 40 years of institutional experience in buying, selling, financing and operating commercial real estate. OPI is headquartered in Newton, MA.
WARNING CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based upon OPI's present intent, beliefs and expectations, but these statements and the implications of these statements are not guaranteed to occur and may not occur for various reasons, some of which are beyond OPI's control. For example, OPI may not realize the benefits it expects following its emergence from chapter 11 or be able to maximize value for its shareholders for various reasons.
The information contained in OPI's filings with the Securities and Exchange Commission, or SEC, including under the caption "Risk Factors" in OPI's periodic reports, or incorporated therein, identifies other important factors that could cause differences from OPI's forward-looking statements. OPI's filings with the SEC are available on the SEC's website at www.sec.gov.
You should not place undue reliance upon forward-looking statements.
Except as required by law, OPI does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.
A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq. No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.
Contacts
Kevin Barry, Senior Director, Investor Relations
(617) 219-1410
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:
Treatment of Debt Claims
• 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 (Nasdaq: 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.
In connection with its emergence from Chapter 11, OPI has formed a new Board of Directors (the "Board") for the Company comprised of senior executives with deep investing and operating experience in the global real estate industry. The Board includes Jonathan Heller (Founder and Chief Executive Officer of Helix Partners Management LP), who will serve as Chairman, Jonathan Kolatch (Founder and Principal at Jasper Lake, LLC), Irvin Schlussel (Chief Investment Officer at the Diamond Family Office), William Lamkin (Former Partner in Ackrell Capital), and Adam Portnoy (President and Chief Executive Officer of RMR).
"We are pleased to have successfully guided OPI through its complex financial restructuring. Working closely with management and the Company's creditors, we strengthened OPI's capital structure and significantly reduced its debt burden," said Jonathan Heller.
Sean Sauler and Ruben Kliksberg, Co-Chief Investment Officers at Redwood Capital Management, one of OPI's largest pre-petition creditors and a post-emergence shareholder, shared, "We are proud to have supported OPI through a complex restructuring that leaves the Company, and its high-quality office portfolio, in a significantly delevered and more flexible capital structure."
Additional Information
Court filings and other documents related to OPI's completed financial restructuring are available on a website administrated by OPI's claims and noticing agent, Kroll Restructuring Administration LLC, at https://restructuring.ra.kroll.com/OPI; by calling Kroll toll-free at (877) 418-2778, or +1 (646) 825-3871 for calls originating outside of the U.S. or Canada; or by emailing Kroll at OPIinfo@ra.kroll.com.
Advisors
Latham & Watkins LLP, Hunton Andrews Kurth LLP, and Sullivan & Worcester LLP served as legal counsel to OPI, Moelis & Company LLC served as investment banker, AP Services, LLC (an affiliate of AlixPartners) served as restructuring advisor, Joele Frank, Wilkinson Brimmer Katcher served as strategic communications advisor, and Kroll Restructuring Administration LLC served as claims, noticing and solicitation agent.
About Office Properties Income Trust
OPI is a national REIT focused on owning and leasing office properties to high credit quality tenants in markets throughout the United States. OPI's property portfolio consists of 122 wholly owned properties located in 29 states and the District of Columbia, containing approximately 17.1 million rentable square feet. OPI is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $37 billion in assets under management as of March 31, 2026, and 40 years of institutional experience in buying, selling, financing and operating commercial real estate. OPI is headquartered in Newton, MA.
WARNING CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based upon OPI's present intent, beliefs and expectations, but these statements and the implications of these statements are not guaranteed to occur and may not occur for various reasons, some of which are beyond OPI's control. For example, OPI may not realize the benefits it expects following its emergence from chapter 11 or be able to maximize value for its shareholders for various reasons.
The information contained in OPI's filings with the Securities and Exchange Commission, or SEC, including under the caption "Risk Factors" in OPI's periodic reports, or incorporated therein, identifies other important factors that could cause differences from OPI's forward-looking statements. OPI's filings with the SEC are available on the SEC's website at www.sec.gov.
You should not place undue reliance upon forward-looking statements.
Except as required by law, OPI does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.
A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq. No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.
Contacts
Kevin Barry, Senior Director, Investor Relations
(617) 219-1410
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