Published on 7/18/2023 in the Prospect News Investment Grade Daily.
New Issue: Piedmont prices $400 million of 9.25% five-year senior notes at 99 to yield 9.506%
By Wendy Van Sickle
Columbus, Ohio, July 18 – Piedmont Operating Partnership LP sold $400 million of 9.25% five-year senior notes (Baa2/BBB) on Tuesday at a 551.3 basis points spread over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at 99 to yield 9.506%.
The bonds will be guaranteed by Piedmont Office Realty Trust, Inc.
J.P. Morgan Securities LLC, BofA Securities, Inc., Truist Securities, Inc., TD Securities (USA) LLC, Wells Fargo Securities, LLC, U.S. Bancorp Investments, Inc. and Scotia Capital (USA) Inc. are the bookrunners.
Proceeds will be used to fund the redemption of the company’s 4.45% senior notes due 2024 tendered and accepted for purchase under a concurrent tender offer.
Piedmont is an Atlanta-based real estate investment trust focused on high-quality class A office properties located primarily in major U.S. Sunbelt markets.
| Issuer: | Piedmont Operating Partnership LP
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| Guarantor: | Piedmont Office Realty Trust, Inc.
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| Amount: | $400 million
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| Issue: | Senior notes
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| Maturity: | July 20, 2028
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| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities, Inc., Truist Securities, Inc., TD Securities (USA) LLC, Wells Fargo Securities, LLC, U.S. Bancorp Investments, Inc. and Scotia Capital (USA) Inc.
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| Co-managers: | PNC Capital Markets LLC and Samuel A. Ramirez & Co., Inc.
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| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | King & Spalding LLP and Venable LLP
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| Counsel to underwriters: | Hogan Lovells US LLP
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| Coupon: | 9.25%
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| Price: | 99
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| Yield: | 9.506%
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| Spread: | Treasuries plus 551.3 bps
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| Call: | Make-whole call at Treasuries plus 50 bps until June 20, 2028, then par call
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| Trade date: | July 18
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| Settlement date: | July 20
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Distribution: | SEC registered
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| Cusip: | 720198AG5
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