|By PR Newswire||
|April 1, 2014 05:05 PM EDT||
ORLANDO, Fla., April 1, 2014 /PRNewswire/ -- Parkway Properties, Inc. (NYSE: PKY) announced today it has entered into an Amended, Restated and Consolidated Credit Agreement for its senior unsecured credit facilities (the "Amended Agreement"), which increased the size of the Company's revolving credit facility to $250.0 million and consolidated its two existing unsecured term loans into a five-year term loan tranche totaling $250.0 million and a seven-year term loan tranche totaling $100.0 million. Additionally, the Company has amended its $10.0 million working capital revolving credit facility under substantially the same terms and conditions.
The Amended Agreement provides for modifications to the existing facilities by, among other things, increasing the size of the accordion feature to as much as $1.0 billion for the entire facility, lowering applicable interest rate spreads and unused fees, and modifying certain other terms and financial covenants. Additionally, the maturity date on the revolving credit facility has been extended to March 30, 2018, with an additional one-year extension option, and the five-year term loan tranche and seven-year term loan tranche have maturity dates of March 29, 2019 and March 31, 2021, respectively. The $100.0 million seven-year term loan tranche has a delayed-draw feature which allows the Company to borrow minimum amounts of $25.0 million in no more than three separate borrowings over the next 12 months, and an unused fee will be charged for any portion of the term loan that is not outstanding. Currently, the Company has not requested any borrowings under the seven-year term loan tranche.
David R. O'Reilly, Parkway's Executive Vice President, Chief Financial Officer and Chief Investment Officer, stated, "The terms of the amended credit facility will provide the Company with greater flexibility, increased borrowing capacity, and lower pricing, and Parkway's ability to achieve these terms is reflective of the transformation of Parkway's portfolio into one of the premier Sunbelt office portfolios."
Wells Fargo Securities, LLC and PNC Capital Markets LLC acted as Joint Lead Arrangers and Joint Book Runners on the senior facility. In addition, Wells Fargo Bank, National Association acted as Administrative Agent and PNC Bank, National Association acted as Syndication Agent. U.S. Bank National Association, Bank of America, N.A., JPMorgan Chase Bank, N.A., KeyBank National Association and Royal Bank of Canada all acted as Documentation Agents. Other participating lenders include Morgan Stanley Bank, N.A., Raymond James Bank, N.A., TD Bank, N.A., Trustmark National Bank and Seaside National Bank & Trust. The working capital revolving credit facility was provided solely by PNC Bank, N.A.
About Parkway Properties
Parkway Properties, Inc. is a fully integrated, self-administered and self-managed real estate investment trust specializing in the acquisition, ownership and management of quality office properties in higher growth submarkets in the Sunbelt region of the United States. Parkway owns or has an interest in 50 office properties located in eight states with an aggregate of approximately 17.6 million square feet at January 1, 2014. Parkway also offers fee-based real estate services which manage and/or lease approximately 12.2 million square feet for third parties as of January 1, 2014. Additional information about Parkway is available on the company's website at www.pky.com.
Director of Investor Relations
SOURCE Parkway Properties, Inc.