Piedmont Office increases credit line to $600 million, extends to 2026

By Wendy Van Sickle

Columbus, Ohio, June 15 – Piedmont Office Realty Trust, Inc. amended and restated its unsecured 2018 line of credit on Tuesday, increasing its size by $100 million to $600 million, according to an 8-K filing with the Securities and Exchange Commission.

At closing, interest was at SOFR plus 85 basis points, but the margin can range from 72.5 bps to 140 bps, depending on the borrowers credit rating.

The maturity date has been extended to June 30, 2026 with two one-year extension options.

Piedmont may increase the facility by up to an additional $500 million.

Financial covenants include an unencumbered interest coverage ratio of at least 1.75, an unencumbered leverage ratio of at least 1.6, a fixed-charge coverage ratio of at least 1.5, a net leverage ratio of no more than 0.6 and a secured net debt ratio of no more than 0.4.

JPMorgan Chase Bank, NA, PNC Capital Markets LLC, Truist Securities, Inc. and Wells Fargo Securities, LLC are the lead arrangers and bookrunners.

PNC Bank, NA, Truist Bank, U.S. Bank and Wells Fargo Bank, NA are the syndication agents.

Bank of America, NA, Morgan Stanley Senior Funding, Inc., TD Bank, NA and Bank of Nova Scotia are the documentation agents. JPMorgan is the administrative agent.

Proceeds may be used for general corporate purposes.

Piedmont is a Johns Creek, Ga.-based real estate investment trust that specializes in office properties.

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