Highwoods Properties Announces $200M in Commitments for a New Seven-Year, Unsecured Term Loan
Highwoods Properties, Inc. (NYSE: HIW) today announced that it has obtained fully executed loan commitments for a new seven-year unsecured term loan for up to $200 million. The term loan is expected to mature in the first quarter of 2019 and be prepayable without penalty beginning in the first quarter of 2016. Based on the Company's current credit ratings, the new loan will have an initial interest rate of LIBOR plus 190 basis points.
The Company has executed forward-starting swaps aggregating $125 million that fix the underlying LIBOR rate for the seven-year life of the loan at 1.745%. The net proceeds of the term loan will be used to reduce the outstanding balance on the Company's $475 million unsecured revolving credit facility and for general corporate purposes.
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