Financing ·
Piedmont Operating Partnership issues $230M exchangeable notes to redeem debt and buy back $50M in stock
PDMPiedmont Realty Trust, Inc.
Piedmont Operating Partnership, LP issued $230 million in principal amount of 2.875% Exchangeable Senior Notes due February 1, 2031. The notes are fully guaranteed by Piedmont Realty Trust, Inc., with interest payable semi-annually on February 1 and August 1. The initial exchange rate is 79.0514 shares of common stock per $1,000 principal amount, representing an exchange price of approximately $12.65 per share. Proceeds will be used to redeem all outstanding 9.250% senior notes due 2028 and pay associated make-whole premiums and accrued interest. Additionally, the company repurchased 5,434,782 shares of common stock for approximately $50 million from certain note purchasers in privately negotiated transactions.