Highwoods Recasts Term Loan
RALEIGH, NC – May 25, 2022 – Highwoods Properties, Inc. (NYSE:HIW) has executed a recast of
its $200 million unsecured bank term loan by extending the maturity date from November 2022 to May
2026 and obtaining a $150 million delayed-draw term loan that will mature in May 2027. The Company
expects to use the additional $150 million of borrowings, which must be drawn in their entirety within 90
days, for working capital purposes, the short-term funding of our development and acquisition activity
and the repayment of other debt.
The interest rate on our new term loan is SOFR plus a related spread adjustment of 10 basis points and
a borrowing spread of 95 basis points. In connection with the foregoing, the interest rate on our $750
million unsecured revolving credit facility was converted from LIBOR plus 90 basis points to SOFR plus
a related spread adjustment of 10 basis points and a borrowing spread of 85 basis points. For both the
term loan and the revolving credit facility, the borrowing spread will be reduced by one basis point
provided Highwoods meets certain sustainability goals with respect to the ongoing reduction of
greenhouse gas emissions.
Ted Klinck, President and Chief Executive Officer of Highwoods Properties, said, “We appreciate the
confidence shown in Highwoods by our bank group. We are pleased to have extended and upsized our
term loan and lowered our all-in borrowing costs. Our bank group’s support and partnership has
provided us the financial flexibility needed to pursue our strategic objectives, and this recast further
strengthens our balance sheet and improves our liquidity.”
BofA Securities, Inc., Wells Fargo Securities, LLC, PNC Capital Markets LLC, Regions Bank, TD Bank,
N.A and J.P. Morgan Chase Bank, N.A. served as Joint Lead Arrangers on the new term loan, with
BofA Securities, Inc., Wells Fargo Securities, LLC and PNC Capital Markets LLC serving as Joint
Bookrunners. Bank of America, N.A. is Administrative Agent and Wells Fargo Bank, National
Association and PNC Bank, National Association are Co-Syndication Agents. Regions Bank, TD Bank,
N.A and J.P. Morgan Chase Bank, N.A. served as Documentation Agents. Truist Securities, Inc. and
U.S. Bank National Association Regions Bank served as Co-Managing Agents. Other lenders include
First Horizon Bank and Associated Bank, National Association.
Highwoods Properties, Inc.
Symbol: HIW
CIK: 921082
Exchange: NYSE
Founded: 1978 (46 years)
Type of REIT: Equity REIT
Listing Status: Public
Market Capitalization: Mid-Cap
REIT Sector: Office, Industrial, Retail
REITRating is REITNote's Real Estate Investment Trust industry-specific rating and ranking system. The overall score is out of ten points, with ten being the best score.
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Last updated: 2024-11-21 - v1.3