Cousins cancels $550 million outstanding debt under Parkway facilities

By Marisa Wong

Morgantown, W.Va., Oct. 6 – Cousins Properties, LP discharged in full the outstanding debt of about $350 million under Parkway Properties, Inc.’s credit agreement dated April 1, 2014 and roughly $200 million under Parkway’s term loan dated June 26, 2015.

The debt was canceled on Thursday, once Cousins Properties Inc.’s merger with Parkway took effect, according to an 8-K filing with the Securities and Exchange Commission.

Cousins had executed accession agreements on Tuesday to guarantee loans under Parkway’s credit agreements, in connection with the merger and the spinoff of Cousins’ Houston-based assets.

The following agreements had been amended to add Cousins as a guarantor:

• The amended, restated and consolidated credit agreement dated April 1, 2014 with Wells Fargo Bank, NA as administrative agent, which provided for a $250 million senior unsecured revolving credit facility, a $250 million five-year unsecured term loan and a $100 million seven-year unsecured term loan;

• The agreement relating to the revolving commitment increases dated Jan. 27, 2015, which provided for the increase of the senior unsecured revolving credit facility to $450 million from $250 million;

• The amended, restated and consolidated guaranty dated April 1, 2014 in favor of Wells Fargo Bank, which provided a guarantee of loans under the April 1, 2014 credit agreement; and

• The term loan agreement dated June 26, 2015 with Wells Fargo Bank as administrative agent, which provided for a $200 million five-year unsecured term loan.

Parkway is an Orlando, Fla.-based real estate investment trust specializing in office properties. Cousins is a REIT based in Atlanta with a focus on urban office assets and mixed-use developments in Sunbelt markets.

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