New Issue: Piedmont prices upsized $400 million 4.45% 10-year senior notes at 178 bps spread

By Aleesia Forni

Virginia Beach, Feb. 25 - Piedmont Operating Partnership LP sold a $400 million issue of 4.45% 10-year senior notes (Baa2/BBB/) on Tuesday with a spread of Treasuries plus 178 basis points, according to a market source and an FWP filed with the Securities and Exchange Commission.

The notes (Baa2/BBB/) sold at the tight end of talk and priced at 99.791 to yield 4.476%.

The bookrunners were J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc., BofA Merrill Lynch and U.S. Bancorp Investments Inc.

Proceeds will be used to repay outstanding secured mortgage debt.

The notes are guaranteed by Piedmont Office Realty Trust Inc.

Issuer:	Piedmont Operating Partnership LP
Guarantor:	Piedmont Office Realty Trust Inc.
Amount:	$400 million, upsized from $350 million
Description:	Senior notes
Maturity:	March 15, 2024
Bookrunners:	J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc., BofA Merrill Lynch, U.S. Bancorp Investments Inc.
Co-managers:	Mitsubishi UFJ Securities (USA) Inc., PNC Capital Markets LLC
Coupon:	4.45%
Price:	99.791
Yield:	4.476%
Spread:	Treasuries plus 178 bps
Make-whole call:	Treasuries plus 30 bps 90 days prior to maturity, then callable at par
Trade date:	Feb. 25
Settlement date:	March 6
Ratings:	Moody's: Baa2
	Standard & Poor's: BBB
Distribution:	SEC registered
Price talk:	Treasuries plus 180 bps area

© 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.