Parkway Properties locks in $125 million five-year term loan at 2.199%

By Susanna Moon

Chicago, Oct. 1 - Parkway Properties, Inc. said it closed a $125 million five-year unsecured term loan Friday led by Keybanc Capital Markets, Inc. and Bank of America Merrill Lynch as lead arrangers and bookrunners.

Interest is initially Libor plus 150 basis points, and the term loan expires on Sept. 27, 2017.

The company may expand the loan size through an accordion feature to up to $250 million, according to a press release.

Also on Friday, the company executed two floating-to-fixed interest rate swaps totaling $125 million, locking the Libor rate at 0.699% for five years, for an initial all-in interest rate of 2.199%.

The term loan will have substantially the same operating and financial covenants as required by the company's current unsecured revolving credit facility, the release noted.

Keybank NA is the administrative agent; Bank of America, NA is the syndication agent; and Wells Fargo Bank, NA is the documentation agent. Other lenders include Royal Bank of Canada, PNC Bank, NA, U.S. Bank NA and Trustmark National Bank.

"The recent $200 million equity investment in Parkway by TPG, as well as Parkway's $250 million purchase of Hearst Tower in Charlotte, has enabled the company to pursue various financing options to fund future acquisition opportunities," David R. O'Reilly, Parkway's executive vice president, chief financial officer and chief investment officer, said in the release.

"We believe that the unsecured term loan offers attractive pricing and will give us greater flexibility than the secured debt options as we continue to grow the company and pursue our long-term financial goals."

Parkway Properties is a real estate investment trust specializing in the ownership of office properties. It is based in Orlando, Fla.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.