Highwoods Properties recasts $750 million revolver, now due in 2028

By Marisa Wong

Los Angeles, Jan. 25 – Highwoods Properties, Inc. and Highwoods Realty LP entered into on Jan. 25 an amended and restated $750 million unsecured revolving credit facility to replace their previously existing $750 million revolver, according to an 8-K filing with the Securities and Exchange Commission.

The new revolver is scheduled to mature in January 2028 but can be extended for two additional six-month periods. The prior maturity was in March 2025.

The interest rate remains SOFR plus a related spread adjustment of 10 basis points and a borrowing spread of 85 bps, based on current credit ratings, and the annual facility fee remains 20 bps.

Subject to written consent of the lenders, the borrowers may elect to amend the newly modified revolver no later than May 15 to provide that the interest rate may be adjusted upward or downward by up to 2.5 bps subject to satisfaction of certain to-be-determined sustainability goals with respect to the ongoing reduction of greenhouse gas emissions.

The financial and other covenants under the newly modified facility are substantially similar to the previous credit facility.

The revolver will be used for working capital purposes and for the short-term funding of development and acquisition activity and, in some cases, the repayment of other debt.

BofA Securities, Inc., Wells Fargo Securities, LLC, PNC Capital Markets LLC, Truist Securities, Inc., U.S. Bank NA and TD Bank, NA served as joint lead arrangers on the new credit facility, with BofA Securities, Inc., Wells Fargo Securities, LLC and PNC Capital Markets LLC serving as joint bookrunners. Bank of America, NA is administrative agent and Wells Fargo Bank, NA and PNC Bank, NA are co-syndication agents.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.