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Bank loans

Highwoods Properties Extends Maturity Date of $200 Million Unsecured Bank Term Loan

Strategic Insights

— 1 min read

Highwoods Properties, Inc. has successfully restructured a $200 million unsecured bank term loan, extending the maturity date from May 2026 to January 2029. This move allows the company to maintain a stable financial foundation while also providing flexibility in its long-term financing strategy. The interest rate on the new term loan is SOFR plus 95 basis points, which may be adjusted upward or downward depending on the company's progress in achieving predetermined sustainability goals related to reducing greenhouse gas emissions.

Key Takeaways:

  • Highwoods Properties has extended the maturity date of a $200 million unsecured bank term loan from May 2026 to January 2029.
  • The term loan can be further extended for two additional years at the company's option, provided no defaults have occurred.
  • The interest rate on the new term loan is SOFR plus 95 basis points and may be adjusted by 2.5 basis points based on the company's progress in reducing greenhouse gas emissions.
  • A syndicate of six banks, including BofA Securities, Inc., Wells Fargo Securities, LLC, PNC Capital Markets LLC, TD Bank, N.A., Truist Securities, Inc., and U.S. Bank National Association, served as Joint Lead Arrangers on the new term loan.
  • Bank of America, N.A. is the Administrative Agent, while Wells Fargo Bank, National Association and PNC Bank, National Association are Co-Syndication Agents.
  • Highwoods Properties is a publicly-traded, fully-integrated office real estate investment trust (REIT) that owns, develops, acquires, leases, and manages properties in major business districts across the United States.

Statistics:

  • $200 million: The principal amount of the unsecured bank term loan.
  • 95 basis points: The base interest rate on the new term loan, plus SOFR.
  • 2.5 basis points: The potential adjustment to the interest rate based on the company's progress in reducing greenhouse gas emissions.
  • 2026: The original maturity date of the term loan.
  • 2029: The extended maturity date of the term loan.
  • 14: The number of banks involved in the syndicate of Joint Lead Arrangers.

Sources:

  • GlobeNewswire
  • Highwoods Properties, Inc. website: www.highwoods.com
  • Brendan Maiorana, Executive Vice President and Chief Financial Officer, Highwoods Properties, Inc.

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