Latham Represents Office Properties Income Trust in Restructuring US$2 billion of Total Debt Obligations

Office Properties Income Trust (OPI) has announced that it has entered into a Restructuring Support Agreement (RSA) with an ad hoc group (the September 2029 Ad Hoc Group) of certain holders of its senior secured notes due September 2029 to restructure its more than US$2 billion total debt obligations and allow the Company to substantially deleverage its balance sheet. The transactions contemplated by the RSA provide the Company with a significantly improved capital structure and reduced debt service obligations, including by the equitization of approximately US$1 billion of existing notes, and allow the Company to increase liquidity while maintaining its business operations in the normal course. To implement the restructuring contemplated by the RSA, OPI and certain of its subsidiaries have filed voluntary chapter 11 petitions in the United States Bankruptcy Court for the Southern District of Texas, in Houston, Texas. OPI has received a commitment for US$125 million in new money, debtor-in-possession financing from the September 2029 Ad Hoc Group to be syndicated to other holders of the September 2029 Notes.

Restructuring & Special Situations partners Ray C. Schrock, Andrew M. Parlen, and Anu Yerramalli are leading the Latham team representing OPI in the process, complemented by the firm’s world class corporate, finance, litigation, real estate, and insurance teams.