SOURCE: Highwoods Properties

Highwoods Properties

November 13, 2013 08:15 ET

Highwoods Properties Recasts: $475 Million Credit Facility, $200 Million Term Loan

Lowers All-In Borrowing Costs, Extends Maturity Dates

RALEIGH, NC--(Marketwired - Nov 13, 2013) - Highwoods Properties, Inc. (NYSE: HIW) has executed a recast of its $475 million unsecured revolving credit facility, which replaces the Company's existing credit facility that was obtained in 2011.

         
         
    New Facility   Old Facility
Amount   $475M   $475M
Accordion   $75M   $75M
LIBOR Borrowing Spread   110 bps   130 bps
Annual Fee   20 bps   25 bps
Maturity Date before Extension Rights   January 2018   July 2015
Unilateral Extension Rights   Two 6-Month   One Year
Capitalization Rate for Covenants   7.5%   8.0%
Participating Lenders   13   13
         
         

Ed Fritsch, President and Chief Executive Officer of Highwoods Properties, said, "We are pleased to have recast our $475 million credit facility, which extends the term for two and a half more years and lowers the all-in borrowing cost. We also genuinely appreciate the confidence shown in Highwoods by the 13 participating banks. Having this facility in place strengthens our ability to capitalize on strategic acquisitions and build-to-suit development opportunities that enhance long-term value for our shareholders."

Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC served as Joint Lead Arrangers and Joint Book Runners on the new credit facility with Bank of America, N.A. serving as Administrative Agent and Wells Fargo Bank, National Association serving as Syndication Agent. PNC Bank, National Association and Branch Banking and Trust Company are Co-Documentation Agents. U.S. Bank National Association, Union Bank, N.A., and Regions Bank are Co-Managing Agents. Other lenders include Morgan Stanley Bank, N.A., Capital One Bank, Comerica Bank, Royal Bank of Canada, First Tennessee Bank National Association, and Fifth Third Bank.

In addition, the Company has also recast its $200 million unsecured bank term loan by extending the term for one additional year to January 2019 and reducing the LIBOR borrowing spread from 135 basis points to 120 basis points.

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 a fully-integrated REIT that provides leasing, management, development, construction and other customer-related services for its properties and for third parties. At September 30, 2013, Highwoods owned or had an interest in 305 in-service office, industrial and retail properties encompassing approximately 33.1 million square feet and owned 589 acres of development land. The Company's properties and development land are located in Florida, Georgia, Missouri, North Carolina, Pennsylvania, South Carolina, Tennessee and Virginia. For more information about Highwoods Properties, please visit our website at www.highwoods.com.

Certain matters discussed in this press release, such as the impact of our projected financing and investment activities, 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 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 2012 Annual Report on Form 10-K and subsequent SEC reports.