Piedmont Realty Trust announced a tender offer to buy back all of its outstanding 9.250% senior unsecured notes due 2028, totaling approximately $532.46 million. The offer, made by Piedmont Operating Partnership, LP, sets the price at a fixed spread of 95 basis points plus the yield to maturity of the 3.50% U.S. Treasury security due November 15 2028. Tender submissions will close on November 19 2025, with payments scheduled for November 20 2025 and settlement for guaranteed delivery procedures on November 24 2025.
The company’s debt load has been a persistent concern. As of the end of 2023, Piedmont’s total debt stood at $1.34 billion, and it has since increased to roughly $2.19 billion. In the third quarter of 2024 the company posted a net loss of $11.5 million ($0.09 per diluted share), and in the third quarter of 2025 it reported a loss of $0.11 per share while revenue rose to $139.16 million from $124.03 million. The dividend was suspended in December 2023 to conserve cash and reduce leverage.
The tender offer is part of a broader refinancing strategy aimed at replacing higher‑coupon debt with lower‑cost capital. By repurchasing the 9.250% notes, Piedmont will lower its interest expense and improve its credit profile, a critical step given the company’s negative net margin and distressed Altman Z‑score. The move also signals confidence in the company’s ability to generate sufficient cash flow to support the buyback and future growth initiatives.
The offer is conditioned on the completion of a concurrent senior notes offering. Piedmont plans to issue new senior unsecured notes, guaranteed by Piedmont Realty Trust, with proceeds earmarked to fund the tender. This simultaneous issuance allows the company to refinance at potentially more favorable terms while maintaining liquidity for ongoing operations and capital expenditures.
No immediate market reaction has been reported, and analysts have not issued new ratings or price targets following the announcement. Investors will likely monitor the participation rate in the tender and the terms of the new notes to gauge the effectiveness of the refinancing strategy.
The tender offer underscores Piedmont’s focus on debt management amid a challenging office‑real‑estate environment. By reducing its high‑interest obligations, the company positions itself to better navigate market headwinds and pursue strategic opportunities in its core Sunbelt portfolio.
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