Piedmont Realty Trust Prices Senior Notes Offering
Piedmont Realty Trust, Inc. (the Company or Piedmont) has announced an exciting new development as its operating partnership, Piedmont Operating Partnership, LP, has priced an impressive offering of $400 million aggregate principal amount of 5.625% senior notes due in 2033 at 99.364% of the principal amount. This move reflects the Company’s ongoing efforts to strengthen its financial position and support its operational goals.
Purpose of the Senior Notes Offering
The net proceeds from this offering are intended to be utilized in a strategic manner. Piedmont plans to use these funds, in conjunction with borrowings under its existing $600 million unsecured line of credit and available cash, to acquire all outstanding 9.250% senior notes due 2028 that are validly tendered and accepted during the concurrent tender offer. Should the tender offer not be completed, or the total consideration for the 2028 notes under this tender offer fail to meet expectations, Piedmont will allocate the remaining net proceeds for working capital, capital expenditures, and other general corporate purposes, which may include settling other outstanding borrowings.
Senior Notes Guaranteed Unconditionally
Importantly, the notes being offered will be guaranteed on a senior unsecured basis by Piedmont Realty Trust. This guarantee ensures that investors have a layer of security associated with their investments in the Company.
Leading Book-Running Managers
The senior notes offering is spearheaded by several prominent financial institutions acting as joint book-running managers, including Wells Fargo Securities, BofA Securities, J.P. Morgan, TD Securities, Truist Securities, Morgan Stanley, and U.S. Bancorp. Their involvement underscores the commitment to delivering a robust offering for potential investors.
Regulatory Compliance and Documentation
The Company has effectively registered these securities with the Securities and Exchange Commission through a shelf registration statement that is currently in effect. The offering will be conducted by means of a prospectus supplement and accompanying prospectus, ensuring transparency and compliance with regulatory standards. Interested parties can obtain these documents by directly contacting the involved financial institutions for any necessary inquiries or further clarification.
About Piedmont Realty Trust
Piedmont Realty Trust (NYSE: PDM) stands out as a fully integrated, self-managed real estate investment company dedicated to providing an unparalleled office environment. With ownership and management oversight of approximately 16 million square feet of Class A properties across key U.S. Sunbelt markets, Piedmont Realty Trust is distinguished by its hospitality-driven approach and commitment to enhancing the workplace experience through its branded "Piedmont PLACEs".
Investor Relations Contact
For any inquiries regarding investor relations, Sherry Rexroad, the Executive Vice President and Chief Financial Officer, is readily available. She can be reached by phone at 770-418-8592 or via email at investor.relations@piedmontreit.com.
Frequently Asked Questions
What is the purpose of the $400 million senior notes offering?
The proceeds will support the purchase of existing senior notes and can be used for working capital and capital expenditures.
Who are the book-running managers for the offering?
The offering is led by Wells Fargo Securities, BofA Securities, J.P. Morgan, TD Securities, Truist Securities, Morgan Stanley, and U.S. Bancorp.
What is Piedmont Realty Trust’s focus?
Piedmont Realty Trust is focused on providing high-quality office environments while managing a significant portfolio of Class A properties.
How does Piedmont Realty Trust ensure compliance?
The Company has a shelf registration statement in place and conducts offerings following regulatory guidelines to maintain transparency.
Who can I contact for more information?
Investors can contact Sherry Rexroad, EVP & Chief Financial Officer, for inquiries related to investor relations.
