By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Sept. 13 – Piedmont Operating Partnership LP sold $300 million of 2.75% senior notes due April 1, 2032 (Baa2/BBB) on Monday at a 148 basis points spread over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at 99.51 to yield 2.804%.
Initial price guidance was at the Treasuries plus 175 bps area, according to a market source.
The bonds will be guaranteed by Piedmont Office Realty Trust, Inc.
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.
| 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: | Senior notes
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| Maturity: | April 1, 2032
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| Bookrunners: | U.S. Bancorp Investments Inc., J.P. Morgan Securities LLC, Truist Securities Inc., Wells Fargo Securities, LLC, BofA Securities, Inc., BMO Capital Markets Corp., Morgan Stanley & Co. LLC and PNC Capital Markets LLC
|
| Co-managers: | Samuel A. Ramirez & Co., Inc., Scotia Capital (USA) Inc. and TD Securities (USA) LLC
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| Coupon: | 2.75%
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| Price: | 99.51
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| Yield: | 2.804%
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| Spread: | Treasuries plus 148 bps
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| Call: | Make-whole call at Treasuries plus 25 bps until Jan. 1, 2032, then par call
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| Trade date: | Sept. 13
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| Settlement date: | Sept. 20
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 175 bps area
|
| Cusip: | 720198AF7
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