Highwoods prices upsized tender; offer oversubscribed at early date

By Wendy Van Sickle

Columbus, Ohio, Aug. 13 – Highwoods Properties, Inc. announced the early results and pricing of its upsized tender offer for up to $150 million of its $300 million outstanding 3.2% notes due 2021 (Cusip: 431282AN2), according to a press release on Thursday.

Noteholders had tendered $222,588,000 of the notes as of the early deadline, 5 p.m. ET on Aug. 12.

The offer was upsized to $150 million from an initial cap of $100 million.

Tenders will be accepted for purchase using a proration rate of 67%.

For each $1,000 principal amount of notes, the company will pay a total consideration $1,019.08.

The total consideration includes a $30 early tender payment for noteholders who validly tendered by the early tender deadline.

Pricing was determined using the 2.375% U.S. Treasury due April 15, 2021 plus a fixed spread of 20 basis points at 10 a.m. ET on Aug. 13.

The early tender deadline was also the withdrawal deadline.

Early settlement is expected on Aug. 14.

The offer will expire at midnight ET on Aug. 26; however, because the offer was oversubscribed no further notes will be accepted.

The financing condition on which the offer was being made is expected to be satisfied later on Thursday.

Wells Fargo Securities, LLC is the dealer manager for the offer (704 410-4759, 866 309-6316, liabilitymanagement@wellsfargo.com).

The tender and information agent is D.F. King & Co., Inc. (212 269-5550, 800 628-8532, hiw@dfking.com).

Highwoods is a real estate investment trust based in Raleigh, N.C.

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