By Cristal Cody
Tupelo, Miss., Aug. 6 – Piedmont Operating Partnership LP (Baa2/BBB) sold $300 million of 3.15% 10-year green senior notes on Wednesday at 99.236 to yield 3.24%, or 270 basis points over Treasuries, according to additional details of the offering in an FWP filing with the Securities and Exchange Commission.
Initial price guidance was at the Treasuries plus 275 bps area.
J.P. Morgan Securities LLC, Truist Securities, Inc., U.S. Bancorp Investments Inc., Wells Fargo Securities, LLC, BofA Securities, Inc., BMO Capital Markets Corp., Jefferies LLC and Morgan Stanley & Co. LLC were the bookrunners.
The bonds will be guaranteed by Piedmont Office Realty Trust, Inc.
Piedmont held fixed income investor calls for the deal on Tuesday.
Proceeds will be used for the previous acquisition of the Galleria Office Towers in February, which the company believes is an eligible green project as it has received LEED Certified certification. Specifically, proceeds will be used to repay the $300 million term loans, which were used for the acquisition, borrowings on the company’s revolver, other term loan debt or for other business purposes.
The company is a real estate investment trust with headquarters in Atlanta.
| Issuer: | Piedmont Operating Partnership LP
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| Guarantor: | Piedmont Office Realty Trust, Inc.
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| Amount: | $300 million
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| Description: | Green senior notes
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| Maturity: | Aug. 15, 2030
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| Bookrunners: | J.P. Morgan Securities LLC, Truist Securities, Inc., U.S. Bancorp Investments Inc., Wells Fargo Securities, LLC, BofA Securities, Inc., BMO Capital Markets Corp., Jefferies LLC and Morgan Stanley & Co. LLC
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| Co-managers: | Barclays, Samuel A. Ramirez & Co., Inc., Scotia Capital (USA) Inc. and TD Securities (USA) LLC
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| Coupon: | 3.15%
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| Price: | 99.236
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| Yield: | 3.24%
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| Spread: | Treasuries plus 270 bps
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| Call features: | Make-whole call at Treasuries plus 45 bps before May 15, 2030; thereafter at par
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| Trade date: | Aug. 5
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| Settlement date: | Aug. 12
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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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| Price guidance: | Treasuries plus 275 bps area
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| Marketing: | Fixed income investor calls
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