SOURCE: Highwoods Properties

Highwoods Properties

February 03, 2011 09:00 ET

Highwoods Properties Announces New $200 Million Term Loan

RALEIGH, NC--(Marketwire - February 3, 2011) -  Highwoods Properties, Inc. (NYSE: HIW), the largest owner and operator of suburban office properties in the Southeast, today announced the execution of a new $200 million unsecured term loan. The loan matures on February 25, 2016 and is prepayable, without penalty, beginning in February 2013. Based on the Company's current credit ratings, the new loan bears interest at LIBOR plus 220 basis points. The net proceeds of the term loan will be drawn on February 25, 2011 and will be used to repay the Company's existing $137.5 million term loan that matures on that date, pay down outstanding borrowings on the unsecured revolving credit facility and for general corporate purposes. 

Ed Fritsch, President and Chief Executive Officer of Highwoods Properties, said, "We are pleased to put this new, unsecured term loan in place and appreciate the continued confidence shown in Highwoods by the participating banks. We proactively decided to increase the size of the new term loan which, along with our $400 million credit facility, further strengthens our ability to capitalize on acquisition and build-to-suit development opportunities that enhance long-term value for our shareholders."

Wells Fargo Securities, LLC served as Sole Lead Arranger for the term loan. Participating banks include:

  Name of Institution   Title
  Wells Fargo Bank, N.A.   Administrative Agent
  Branch Banking and Trust Company   Documentation Agent
  PNC Bank, N.A.   Documentation Agent
  Regions Bank   Documentation Agent
  U.S. Bank N.A.   Documentation Agent
  Royal Bank of Canada/RBC Bank USA   Participant
  Union Bank, N.A.   Participant
  Capital One, N.A.   Participant
  First Tennessee Bank, N.A.   Participant

About Highwoods Properties
Highwoods Properties, headquartered in Raleigh, North Carolina, is a publicly traded (NYSE: HIW) real estate investment trust ("REIT") and a member of the S&P MidCap 400 Index. The Company is the largest owner and operator of suburban office properties in the Southeast and provides leasing, management, development, construction and other customer-related services for its properties and for third parties. At December 31, 2010, Highwoods owned or had an interest in 330 in-service office, industrial and retail properties encompassing approximately 32.4 million square feet and owned 612 acres of development land. The Company's properties and development land are located in Florida, Georgia, Mississippi, Missouri, North Carolina, South Carolina, Tennessee and Virginia. For more information about Highwoods Properties, please visit our web site at www.highwoods.com.

Certain matters discussed in this press release, such as the expected impact and timing of our financing activity, are forward-looking statements within the meaning of the federal securities laws. These statements are distinguished by use of the words "will", "expect", "intend" and words of similar meaning. Although Highwoods believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.

Factors that could cause actual results to differ materially from Highwoods' current expectations include, among others, the following: the financial condition of our customers could deteriorate; development activity by our competitors in our existing markets could result in excessive supply of properties relative to customer demand; development, acquisition, reinvestment, disposition or joint venture projects may not be completed as quickly or on as favorable terms as anticipated; we may not be able to lease or re-lease second generation space quickly or on as favorable terms as old leases; our Southeastern and Midwestern markets may suffer declines in economic growth; we may not be able to lease our newly constructed buildings as quickly or on as favorable terms as originally anticipated; unanticipated increases in interest rates could increase our debt service costs; unanticipated increases in operating expenses could negatively impact our NOI; we may not be able to meet our liquidity requirements or obtain capital on favorable terms to fund our working capital needs and growth initiatives or to repay or refinance outstanding debt upon maturity; the Company could lose key executive officers; and others detailed in the Company's 2009 Annual Report on Form 10-K and subsequent SEC reports.