Piedmont Realty Trust, Inc. (NYSE: PDM) announced on September 14, 2026, the pricing of an offering of $200,000,000 aggregate principal amount of 2.875% exchangeable senior notes due 2031. The notes were issued by the company’s operating partnership, Piedmont Operating Partnership, LP, in a private placement to qualified institutional buyers under Rule 144A.
The notes will be senior, unsecured obligations of the Operating Partnership and will accrue interest at a rate of 2.875% per annum, payable semi-annually on February 1 and August 1 of each year, beginning February 1, 2027. The notes are set to mature on February 1, 2031, unless earlier exchanged, redeemed, or repurchased.
Key terms of the exchange feature include an initial exchange rate of 79.0514 shares of Piedmont common stock per $1,000 principal amount of notes. This represents an initial exchange price of $12.65 per share, which is a premium of approximately 37.5% over the last reported sale price of $9.20 per share on September 14, 2026. The Operating Partnership will settle exchanges by paying cash or a combination of cash and common stock, at its election.
The offering includes an option for the initial purchasers to buy up to an additional $30,000,000 in aggregate principal amount of notes within 13 days of the issuance. The notes are also subject to various redemption provisions, including at the Operating Partnership’s option on or after August 6, 2029, under specific conditions.
Piedmont estimates net proceeds of approximately $194.3 million, or $223.5 million if the option is fully exercised. The company plans to use these proceeds, along with cash on hand and borrowings, to redeem all outstanding 9.250% senior notes due 2028. Additionally, approximately $50 million of the net proceeds is earmarked for a concurrent repurchase of 5,434,782 shares of common stock at $9.20 per share.
