Piedmont Realty Trust prices USD 200 million exchangeable senior notes offering due 2031
PDM•Offering priced and proceeds use
Piedmont Realty Trust priced a private offering of USD 200 million 2.875% exchangeable senior notes due 2031, with a USD 30 million upsize option.
Net proceeds are estimated at about USD 194.3 million, rising to about USD 223.5 million if the upsize option is fully exercised. Proceeds are earmarked to redeem outstanding 9.250% senior notes due 2028, using additional funding sources including ATM forwards, cash and revolver borrowings.
Concurrent share repurchase and terms
About USD 50 million will be allocated to repurchase 5,434,782 common shares at USD 9.20 in a concurrent privately negotiated transaction.
The notes are scheduled to settle Sept. 17. The initial exchange price is set at USD 12.65 a share, a 37.5% premium to the Sept. 14 close.
