Piedmont Operating plans senior notes via four bookrunners; talk at 175 bps spread area

By Devika Patel and Cristal Cody

Knoxville, Tenn., Sept. 13 – Piedmont Operating Partnership LP expects to price fixed-rate senior notes, according to a 424B5 filed with the Securities and Exchange Commission.

A market source saw the proposed offering circulating with an expected $300 million size and a maturity date of April 1, 2032.

The source also noted that the spread was being expected in the Treasuries plus 175 basis points area.

The bonds will be guaranteed by Piedmont Office Realty Trust, Inc.

The notes feature a make-whole call and then a par call.

U.S. Bancorp Investments Inc., J.P. Morgan Securities LLC, Truist Securities Inc. and Wells Fargo Securities LLC are the bookrunners.

Proceeds will be used to repay outstanding borrowings under the company’s $300 million unsecured 2011 term loan, with any remaining amounts being used for working capital, capital expenditures and other general corporate purposes.

The company is a real estate investment trust with headquarters in Atlanta.

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