Piedmont Realty Trust’s operating partnership priced a $400 million aggregate principal amount of 5.625% senior notes due 2033 at 99.364% of principal, a discount that signals favorable market conditions for the company’s debt issuance. The notes are fully and unconditionally guaranteed on a senior unsecured basis by Piedmont Realty Trust, Inc., and the offering is expected to close on November 20, 2025, subject to customary closing conditions.
The proceeds will be combined with borrowings under the company’s $600 million unsecured line of credit and any available cash to purchase all outstanding 9.250% senior notes due 2028 that are validly tendered and accepted in the concurrent tender offer. By replacing the higher‑rate 9.250% notes with lower‑rate 5.625% notes, Piedmont reduces its weighted‑average cost of debt and frees up cash flow for future capital expenditures and leasing initiatives.
This refinancing is part of Piedmont’s broader strategy to strengthen its balance sheet amid mixed recent earnings. The company’s total debt stood at $2.19 billion as of November 13, 2025, and the new notes help lower interest expense on a significant portion of that debt. The move also aligns with the company’s focus on the Sunbelt office market, where demand for Class A properties has been rising due to corporate relocations and a shift toward premium workspaces.
Piedmont owns, manages, develops, and operates approximately 16 million square feet of Class A office space across major U.S. Sunbelt markets. The company rebranded to Piedmont Realty Trust in June 2025 to emphasize its commitment to creating “Piedmont PLACEs” – premium workspaces designed to enhance the client experience. The refinancing supports this strategy by providing a more favorable debt profile that can be deployed toward portfolio expansion and modernization.
The pricing of the notes at 99.364% of principal reflects a modest discount to par, indicating that investors view Piedmont’s credit profile positively and that the company can secure debt at attractive terms. The guarantee by Piedmont Realty Trust, Inc. further reduces perceived risk, making the offering appealing to a broad range of investors. Overall, the transaction positions Piedmont to maintain a low‑cost capital structure while pursuing growth in a market that continues to show resilience and demand for high‑quality office space.
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