Parkway Completes Placement of $125 Million Unsecured Term Loan
PARKWAY PROPERTIES (NYSE: PKY) announced today it has closed a $125 million unsecured term loan, with funding received on Friday, September 28, 2012. The term loan has a maturity date of September 27, 2017, and has an accordion feature that allows for an increase in the size of the term loan to as much as $250 million. Interest on the term loan is based on LIBOR plus an applicable margin, initially 1.5%. Also on September 28, 2012, the Company executed two floating-to-fixed interest rate swaps totaling $125 million, locking LIBOR at 0.699% for five years, which result in an initial all-in interest rate of 2.199%. The term loan will have substantially the same operating and financial covenants as required by the Company's current unsecured revolving credit facility.
David R. O'Reilly, Parkway's Executive Vice President, Chief Financial Officer and Chief Investment Officer, stated, "The recent $200 million equity investment in Parkway by TPG, as well as Parkway's $250 million purchase of Hearst Tower in Charlotte, has enabled the Company to pursue various financing options to fund future acquisition opportunities. We believe that the unsecured term loan offers attractive pricing and will give us greater flexibility than the secured debt options as we continue to grow the Company and pursue our long-term financial goals. We thank all of the participating lenders for their commitment and support."
Keybanc Capital Markets, Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated acted as Joint Lead Arrangers and Joint Bookrunners on the term loan. In addition, Keybank National Association acted as Administrative Agent; Bank of America, N. A. acted as Syndication Agent; and Wells Fargo Bank, National Association acted as Documentation Agent. Other participating lenders include Royal Bank of Canada, PNC Bank, National Association, U. S. Bank National Association, and Trustmark National Bank.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.