By Marisa Wong
Los Angeles, Dec. 5 – Piedmont Operating Partnership LP priced $200 million of additional 9.25% senior notes due July 20, 2028, according to an FWP filing with the Securities and Exchange Commission.
The additional notes (expected: Baa3/BBB-) will be part of the same series as the $400 million of 9.25% notes due 2028 issued on July 20.
The tap issue priced at 101.828 for a yield to worst of 8.75%, or at Treasuries plus 460.5 basis points.
The notes are guaranteed by Piedmont Office Realty Trust, Inc.
The notes are callable with a Treasuries plus 50 bps make-whole premium until the June 20, 2028 par call date after which the notes may be called at par.
Wells Fargo Securities, LLC, BofA Securities, Inc., Truist Securities, Inc. and U.S. Bancorp Investments, Inc. are the joint bookrunners for the tap issue.
Proceeds will be used for general corporate purposes, including repaying outstanding debt, working capital, capital expenditures and other general corporate purposes.
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: | $200 million
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| Issue: | Senior notes, add-on
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| Maturity: | July 20, 2028
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| Bookrunners: | Wells Fargo Securities, LLC, BofA Securities, Inc., Truist Securities, Inc. and U.S. Bancorp Investments, 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 (Maryland)
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| Counsel to underwriters: | Hogan Lovells US LLP
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| Coupon: | 9.25%
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| Price: | 101.828
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| Yield to worst: | 8.75%
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| Spread: | Treasuries plus 460.5 bps
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| Call option: | Make-whole call at Treasuries plus 50 bps until June 20, 2028; par call after that
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| Trade date: | Dec. 5
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| Settlement date: | Dec. 11
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| Ratings: | Moody’s: Baa3
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| S&P: BBB-
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| Total issuance: | $600 million, including $400 million issued on July 20
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| Cusip: | 720198AG5
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