Piedmont Office Realty Trust Completes $400 Million Senior Notes Offering and Tender Offer

King & Spalding advised Piedmont Office Realty Trust in a pair of capital market transactions this month.

On July 20, 2023, Piedmont Operating Partnership, LP, the operating partnership (“Operating Partnership”) and subsidiary of Piedmont Office Realty Trust, Inc. (“Piedmont”), completed the offer and sale of $400 million aggregate principal amount of its 9.250% senior notes due 2028 (the “2028 notes”) in an underwritten registered public offering, generating approximately $393.6 million in net proceeds. The notes are fully and unconditionally guaranteed by Piedmont.

On July 27, 2023, Piedmont Operating Partnership, LP announced the completion of an abbreviated cash tender offer to purchase any and all of the Operating Partnership’s outstanding 4.45% senior notes due 2024 (“2024 notes”). Approximately $349,846,000 of the $400,000,000 principal amount of the 2024 notes outstanding, or 87.46%, was successfully tendered and accepted for purchase in the tender offer. The tender offer was financed through the offer and sale of the 2028 notes.

Piedmont is an owner, manager, developer, redeveloper, and operator of high-quality, Class A office properties located primarily in select sub-markets within seven major Eastern U.S. office markets, with the majority of its revenue being generated from the Sunbelt.

The King & Spalding team advising Piedmont on the offering consisted of Keith Townsend, Zach Cochran, John Morris, and Savannah Padgett. Wayne Pressgrove and Andrew Todd advised on tax matters, Jennifer Neilsson advised on ERISA matters and Alanna Quinn assisted with corporate matters.