Piedmont Office Realty Trust, Inc. Delivers Notice to Prepay, in Full, the Entire Principal Balance of the 2020 Term Loan
August 12, 2020 at 04:11 pm EDT
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On August 12, 2020, Piedmont Operating Partnership, LP (the “Operating Partnership”), the operating partnership and wholly owned subsidiary of Piedmont Office Realty Trust, Inc. (the “Company”), issued $300 million in aggregate principal amount of 3.150% Senior Notes due 2030 (the “Notes”), which mature on August 15, 2030, pursuant to an indenture, dated as of March 6, 2014 (as amended and supplemented by a supplemental indenture (the “Supplemental Indenture”), dated August 12, 2020, the “Indenture”), by and among the Operating Partnership, the Company and U.S. Bank National Association, as trustee (the “Trustee”). The Notes are fully and unconditionally guaranteed by the Company. Interest on the Notes is payable semi-annually on February 15 and August 15 of each year, commencing February 15, 2021. In connection with the issuance of the Notes, the Company delivered a notice to prepay, in full, the entire principal balance of the 2020 Term Loan, together with all accrued and unpaid interest thereon. The issuance of the Notes on August 12, 2020 constitutes a mandatory prepayment event under the 2020 Term Loan, requiring the Company to prepay outstanding borrowings under the 2020 Term Loan to the extent of the net proceeds received from the offering of the Notes. The 2020 Term Loan was issued under, and is governed by, the credit agreement, dated as of February 10, 2020 (as amended), by and among the Operating Partnership, the Company, the financial institutions party thereto and their assignees under Section 12.5 thereof, Truist Bank, as agent, and the other parties thereto. The prepayment occurred on August 12, 2020 in connection with the offering of the Notes described above. Upon receipt of the prepayment, the credit agreement was terminated.
Piedmont Office Realty Trust, Inc. is a fully integrated, self-managed real estate investment trust (REIT). The Company is an owner, manager, developer, redeveloper, and operator of Class A office properties located primarily in major United States Sunbelt markets. The Company conducts business through its wholly owned subsidiary, Piedmont Operating Partnership, L.P. (Piedmont OP). It owns and operates about 51 in-service office properties comprised of approximately 17 million square feet of primarily Class A office space which are 87.1% leased. It has one redevelopment asset comprising about 127,000 square feet in Orlando, Florida. The Companyâs portfolio of properties is primarily located in various metropolitan areas, including Atlanta, Dallas, Northern Virginia/Washington, D.C., Boston, Orlando, Minneapolis, and New York, and others.