Parkway Properties lifts revolver to $250 million, extends till 2018

By Susanna Moon

Chicago, April 1 - Parkway Properties, Inc. said it amended its senior unsecured credit facilities, lifting the size of the revolving credit facility to $250 million and extending the term until March 30, 2018.

The company also consolidated the two unsecured term loans into a five-year term loan tranche totaling $250 million and a seven-year term loan tranche totaling $100 million, according to a company press release.

Parkway said it also amended its $10 million working capital revolving credit facility under substantially the same terms and conditions.

The amended agreement provides for modifications to the facilities by, increasing the size of the accordion feature to as much as $1 billion for the entire facility, lowering interest rate spreads and unused fees, and modifying other terms and financial covenants.

The revolver has an additional one-year extension option, and the five-year term loan tranche and seven-year term loan tranche have maturity dates of March 29, 2019 and March 31, 2021, respectively.

The $100 million seven-year term loan tranche has a delayed-draw feature, which allows the company to borrow minimum amounts of $25 million in no more than three separate borrowings over the next 12 months, and an unused fee will be charged for any portion of the term loan that is not outstanding.

The company has not requested any borrowings under the seven-year term loan tranche.

Wells Fargo Securities, LLC and PNC Capital Markets LLC are the joint lead arrangers and joint bookrunners on the senior facility. In addition, Wells Fargo Bank, NA is the administrative agent and PNC Bank, NA is the syndication agent. U.S. Bank NA, Bank of America, NA, JPMorgan Chase Bank, NA, KeyBank NA and Royal Bank of Canada are documentation agents. Other lenders include Morgan Stanley Bank, NA, Raymond James Bank, NA, TD Bank, NA, Trustmark National Bank and Seaside National Bank & Trust.

The working capital revolving credit facility was provided solely by PNC Bank, NA.

"The terms of the amended credit facility will provide the company with greater flexibility, increased borrowing capacity and lower pricing, and Parkway's ability to achieve these terms is reflective of the transformation of Parkway's portfolio into one of the premier Sunbelt office portfolios," David R. O'Reilly, Parkway's executive vice president, chief financial officer and chief investment officer, said in the press release.

Parkway Properties is a self-administered real estate investment trust specializing in the ownership of quality office properties in higher-growth submarkets in the Sunbelt region of the United States. The REIT is based in Orlando, Fla.

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