Piedmont Realty Trust, Inc. (NYSE: PDM) announced a proposed private offering of $200,000,000 aggregate principal amount of exchangeable senior notes due 2031. The notes are to be issued by the Company’s operating partnership, Piedmont Operating Partnership, LP, and are intended for qualified institutional buyers under Rule 144A.
The Company will fully and unconditionally guarantee the notes on a senior, unsecured basis. The Operating Partnership also expects to grant initial purchasers an option to purchase up to an additional $30,000,000 in aggregate principal amount of notes within 13 days of issuance. The notes will mature on February 1, 2031, unless earlier repurchased, redeemed, or exchanged.
Regarding the use of proceeds, the Company intends to use a portion of the net proceeds, along with cash on hand and borrowings under its line of credit, to redeem all outstanding 9.250% senior notes due 2028. The Company also expects to use up to approximately $50 million of the net proceeds to repurchase shares of its common stock concurrently with the pricing of the notes.
In other business updates, the Company acquired 4075 Wilson Boulevard in Arlington, Virginia, for a net purchase price of approximately $52.7 million. The 189,000 square foot Class A office building is approximately 83% leased with a weighted-average lease term of 5.5 years.
Separately, the Company completed the sale of Royal Lane Land, a 10.6-acre parcel in Dallas, Texas, for approximately $12.0 million. The Company also entered into a contract to sell certain office properties for approximately $80 million, with the transaction anticipated to close during the fourth quarter of 2026, subject to customary due diligence and closing conditions.
