Parkway gets $400 million debt commitment via Wells, BofA, JPMorgan

By Marisa Wong

Morgantown, W.Va., April 29 – Parkway Properties, Inc. entered into a debt commitment letter with Wells Fargo Bank, NA, Bank of America, NA and JPMorgan Chase Bank, NA for an up to $400 million credit facility, according to an 8-K filing with the Securities and Exchange Commission.

Parkway entered into the commitment letter in connection with its merger with Cousins Properties Inc. and the simultaneous spinoff of both companies’ Houston-based assets into a new real estate investment trust.

The commitment provides the new Houston REIT with an up to $350 million senior secured term loan and an up to $50 million senior secured revolver that may be increased to $100 million.

Proceeds of the term loan will be used to fund a $200 million distribution to Parkway, to pay fees and expenses associated with the merger, the spin-off and the credit facilities and for the general corporate purposes following the spin-off.

Proceeds of the revolver will be used for general corporate purposes following the spin-off.

Funding of the facilities is contingent on the closing of the merger. The transaction is expected to close in the fourth quarter of 2016.

Parkway is an Orlando, Fla.-based REIT specializing in office properties. Cousins Properties is a REIT based in Atlanta with a focus on urban office assets and mixed-use developments in Sunbelt markets.

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