Highwoods Properties Inc
), a real estate investment trust (REIT), has recently reduced
its interest burden on a term loan facility worth $200 million by
modifying its maturity period. The company extended the debt
maturity of the loan by about two additional years. The term loan
was originally scheduled to mature on February 25, 2016. With the
extension, the term loan is presently due to mature on January
Wells Fargo Securities LLC, part of
Wells Fargo & Company
), acted as the Lead Arranger for the modified debt facility.
Besides extending the debt maturity, the modified loan bears an
interest at LIBOR plus 1.65%, compared to the original interest
rate of LIBOR plus 2.20%.
The strategic efforts are aimed to increase the liquidity of the
company. Furthermore, Highwoods is divesting its non-core assets
to raise additional cash. The asset sale is also part of the
long-term strategy of the company to focus on high-growth Sun
Belt markets, which provide above-average job growth owing to its
long-term demographic trends.
Based in Raleigh, North Carolina, Highwoods owns and operates its
properties through its wholly-owned subsidiary Highwoods Realty
Limited Partnerships. The company owns office, industrial, retail
and service center properties, including development projects and
apartment units across the U.S. It also provides customer-related
and fee-based real estate management services for its properties
as well as for third-party clients.
Highwoods is one of the biggest 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
As of June 30, 2012, Highwoods owned or had ownership interests
in 338 in-service office, industrial and retail properties
spanning approximately 34.6 million square feet, along with 581
acres of development land. The core markets of the company
include Florida, Georgia, Iowa, Maryland, Missouri, Mississippi,
North Carolina, South Carolina, Tennessee and Virginia.
We maintain our long-term Neutral recommendation on
HIGHWOODS PPTYS (HIW): Free Stock Analysis
WELLS FARGO-NEW (WFC): Free Stock Analysis
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