The operating partnership of
Highwoods Properties Inc
), a real estate investment trust (REIT), has recently priced
3.625% senior unsecured notes worth $250 million. The notes are
scheduled to mature in January 2023 to yield 3.752% on maturity.
The net proceeds are intended to be utilized to reduce debt
outstanding under the company's $475 million revolving credit
facility and for general corporate purposes. At the end of third
quarter 2012, Highwoods had $9.1 million in cash and cash
Subsequent to the end of third quarter 2012, the company extended
the maturity of a $200 million unsecured term loan scheduled to
mature in February 2016 to January 2018. The modified loan
carries interest at LIBOR plus 1.65%, a 55 basis point reduction
from the original interest rate of LIBOR plus 2.20%.
Wells Fargo Securities, LLC, part of
Wells Fargo & Company
), and Jefferies & Company, Inc., part of
Jefferies Group, Inc
) acted as joint book-running managers for the offering.
Highwoods is one of the largest owners and operators of suburban
office, industrial and retail properties in the Southeastern and
Midwestern U.S., providing a complete line of real estate
services to its customers and third parties through a
fully-integrated organization. The company maintains a
conservative and flexible balance sheet with ample liquidity and
minimal debt maturities that enable it to capitalize on potential
acquisition opportunities to fuel its top-line growth.
Highwoods currently retains a Zacks #2 Rank, which translates
into a short-term Buy rating. We also maintain our long-term
Neutral recommendation on the stock.
HIGHWOODS PPTYS (HIW): Free Stock Analysis
JEFFERIES GP-NW (JEF): Free Stock Analysis
WELLS FARGO-NEW (WFC): Free Stock Analysis
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