Piedmont Realty Trust Announces Pricing of Senior Notes Offering

Rhea-AI Summary

Piedmont Realty Trust (NYSE:PDM) priced $400.0 million aggregate principal of 5.625% senior notes due 2033 at 99.364%, with closing expected on November 20, 2025 subject to customary conditions.

The operating partnership intends to use net proceeds, together with borrowings under its $600 million unsecured line of credit and cash on hand if needed, to fund a tender offer to purchase outstanding 9.250% senior notes due 2028 that are validly tendered and accepted. If the tender offer is not consummated or fully used, remaining proceeds may be used for working capital, capital expenditures and other general corporate purposes. The new notes will be senior unsecured and guaranteed by the company.

Positive

• $400.0M 2033 notes priced at 5.625%
• Intends to retire 9.250% 2028 notes via tender offer
• Notes fully guaranteed on a senior unsecured basis

Negative

• May increase short-term leverage via draws on $600M unsecured credit line
• If tender offer fails, proceeds redirected to general purposes, reducing refinancing certainty

Insights

Capital Markets Analyst

Piedmont priced $400 million of 5.625% senior notes due 2033 to refinance higher‑coupon paper and extend debt maturity.

Piedmont Realty Trust has priced $400,000,000 of 5.625% senior notes due 2033 at 99.364%, expected to close on November 20, 2025. The stated use of proceeds is to purchase outstanding 9.250% senior notes due 2028 via a concurrent tender offer; the notes will be unconditionally guaranteed by the parent. These are plain‑vanilla fixed‑rate senior unsecured securities and were placed with major book‑running managers.

The business mechanism is straightforward: issue longer‑dated, lower‑coupon debt to retire shorter‑dated, higher‑coupon paper, which should reduce contractual interest cost on the replaced principal if the tender succeeds. This depends directly on the full or partial acceptance of the tender offer and on the actual net proceeds after fees; the company also plans to draw on its $600,000,000 unsecured line of credit and cash if needed, which preserves flexibility but may shift leverage or near‑term liquidity profiles.

Watch the tender offer result at the close on or shortly after November 20, 2025, the actual amount of 2028 notes retired, and any post‑transaction use of leftover proceeds for working capital or debt repayment. If the tender retires a meaningful share of the 2028 notes, the capital structure will become cheaper and more duration‑stretched; if not, remaining proceeds will alter short‑term liquidity and borrowing mix. Expect definitive outcomes to appear in the tender offer and closing disclosures within days of the expected close.

Atlanta, Nov. 13, 2025 (GLOBE NEWSWIRE) -- Piedmont Realty Trust, Inc. (the “Company” or “Piedmont”) (NYSE:PDM) announced today that its operating partnership, Piedmont Operating Partnership, LP (the “Operating Partnership”), has priced an offering of $400 million aggregate principal amount of 5.625% senior notes due 2033 at 99.364% of the principal amount. The offering is expected to close on November 20, 2025, subject to the satisfaction of customary closing conditions.

Piedmont intends to use the net proceeds from the offering, together with borrowings under its $600 million unsecured line of credit and cash on hand, if necessary, to fund the purchase of all of its outstanding 9.250% senior notes due 2028 that are validly tendered and accepted for purchase in the tender offer commenced substantially concurrently with the offering. In the event that the tender offer is not consummated, or the aggregate consideration for all 2028 notes that are validly tendered and accepted for purchase in the tender offer is less than the net proceeds from the offering, Piedmont intends to use the remaining net proceeds from the offering for working capital, capital expenditures and other general corporate purposes, which may include repaying other borrowings outstanding.

The notes will be fully and unconditionally guaranteed on a senior unsecured basis by the Company.

Wells Fargo Securities, BofA Securities, J.P. Morgan, TD Securities, Truist Securities, Morgan Stanley and U.S. Bancorp are acting as joint book-running managers.

A shelf registration statement relating to these securities is effective with the Securities and Exchange Commission. The offering may be made only by means of a prospectus supplement and accompanying prospectus. Copies of these documents may be obtained by contacting Wells Fargo Securities, LLC at 608 2nd Avenue South, Suite 1000, Minneapolis, Minnesota 55402, Attention: WFS Customer Service, or by calling: 1-800-645-3751, or by emailing: wfscustomerservice@wellsfargo.com; BofA Securities, Inc., NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001, Attn: Prospectus Department, Email: dg.prospectus_requests@bofa.com; J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by email at prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com; TD Securities (USA) LLC, 1 Vanderbilt Avenue 11th Floor New York, New York 10017, Attention: Transaction Advisory Group or Toll-Free at 1-855-495-9846; or Truist Securities, Inc., 740 Battery Avenue SE, 3^rd Fl, Atlanta, GA 30339, Attn: Prospectus Dept, Telephone: (800) 685-4786 or by email at TruistSecurities.prospectus@Truist.com. Electronic copies of these documents are also available from the Securities and Exchange Commission’s website at www.sec.gov.

This press release is neither an offer to purchase nor a solicitation of an offer to sell the notes, nor shall it constitute an offer, solicitation or sale in any state or jurisdiction in which such offer, solicitation or sale is unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Piedmont Realty Trust

Piedmont Realty Trust™ (NYSE: PDM), is a fully integrated, self-managed real estate investment company focused on delivering an exceptional office environment. As an owner, manager, developer and operator of approximately 16 MM SF of Class A properties across major U.S. Sunbelt markets, Piedmont Realty Trust is known for its hospitality-driven approach and commitment to transforming buildings into premier “Piedmont PLACEs” that enhance each client’s workplace experience.

Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company intends for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such information is subject to certain known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated. Therefore, such statements are not intended to be a guarantee of the Company`s performance in future periods. Such forward-looking statements can generally be identified by the Company’s use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue” or similar words or phrases that indicate predictions of future events or trends or that do not relate solely to historical matters. These statements are based on beliefs and assumptions of Piedmont’s management, which in turn are based on information available at the time the statements are made.

The following are some of the factors that could cause the Company's actual results and its expectations to differ materially from those described in the Company’s forward-looking statements: economic, regulatory, socio-economic, technological (e.g., artificial intelligence and machine learning, virtual meeting platforms, etc.), and other changes that impact the real estate market generally, the office sector or the patterns of use of commercial office space in general, or the markets where we primarily operate or have high concentrations of revenue; reduced demand for office space, including as a result of remote working and flexible or “hybrid” working arrangements that allow work from remote locations other than an employer’s office premises; the impact of competition on our efforts to renew existing leases or re-let space on terms similar to existing leases; lease terminations, lease defaults, lease contractions, or changes in the financial condition of our tenants, particularly by one of our large tenants; impairment charges on our long-lived assets or goodwill resulting therefrom; the success of our real estate strategies and investment objectives, including our ability to implement successful redevelopment and development strategies or identify and consummate suitable acquisitions and divestitures; the illiquidity of real estate investments, including economic changes, such as fluctuating interest rates, costs of construction, improvements and redevelopments, and available financing, which could impact the number of buyers/sellers of our target properties, and regulatory restrictions to which real estate investment trusts (“REITs”) are subject and the resulting impediment on our ability to quickly respond to adverse changes in the performance of our properties; the risks and uncertainties associated with our acquisition and disposition of properties, many of which risks and uncertainties may not be known at the time of acquisition or disposition; development and construction delays, including the potential of supply chain disruptions, and resultant increased costs and risks; future acts of terrorism, civil unrest, or armed hostilities in any of the major metropolitan areas in which we own properties; risks related to the occurrence of cybersecurity incidents, including cybersecurity incidents against us or any of our properties, vendors, or tenants, or a deficiency in our identification, assessment or management of cybersecurity threats impacting our operations and the public's reaction to reported cybersecurity incidents, including the reputational impact on our business and value of our common stock; costs of complying with governmental laws, regulations and policies, including environmental standards imposed on office building owners; uninsured losses or losses in excess of our insurance coverage, and our inability to obtain adequate insurance coverage at a reasonable cost; additional risks and costs associated with directly managing properties occupied by government tenants, such as potential changes in the political environment, a reduction in federal or state funding of our governmental tenants, government layoffs or an increased risk of default by government tenants during periods in which state or federal governments are shut down or on furlough; significant price and volume fluctuations in the public markets, including on the exchange on which we listed our common stock; risks associated with incurring mortgage and other indebtedness, including changing capital reserve requirements on our lenders and rising interest rates for new debt financings; a downgrade in our credit ratings, the credit ratings of the Operating Partnership or the credit ratings of our or the Operating Partnership's unsecured debt securities, which could, among other effects, trigger an increase in the stated rate of one or more of our unsecured debt instruments; the effect of future offerings of debt or equity securities on the value of our common stock; additional risks and costs associated with adverse U.S. global and economic conditions, inflation and potential increases in the rate of inflation, including the impact of a possible recession, uncertainty and volatility in financial markets, and any changes in governmental rules, regulations, and fiscal policies; uncertainties associated with environmental and regulatory matters; changes in the financial condition of our tenants directly or indirectly resulting from geopolitical developments that could negatively affect important supply chains and international trade, the termination or threatened termination of existing international trade agreements, or the implementation of tariffs or retaliatory tariffs on imported or exported goods; the effect of any litigation to which we are, or may become, subject; additional risks and costs associated with owning properties occupied by tenants in particular industries, such as oil and gas, hospitality, travel, co-working, etc., including risks of default during start-up and during economic downturns; changes in tax laws impacting REITs and real estate in general, as well as our ability to continue to qualify as a REIT under the Internal Revenue Code of 1986, as amended, or other tax law changes which may adversely affect our stockholders; the future effectiveness of our internal controls and procedures; actual or threatened public health epidemics or outbreaks of highly infectious or contagious diseases, as well as immediate and long-term governmental and private measures taken to combat such health crises; and other factors, including the risk factors described in Item 1A. Risk Factors of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, as well as the risk factors discussed under Item 1A. of our Annual Report on Form 10-K for the year ended December 31, 2024.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company cannot guarantee the accuracy of any such forward-looking statements contained in this press release, and the Company does not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Contact

Sherry Rexroad, EVP & Chief Financial Officer
770-418-8592
investor.relations@piedmontreit.com

FAQ

What did Piedmont Realty Trust (PDM) price on November 13, 2025?

Piedmont priced $400.0 million of 5.625% senior notes due 2033 at 99.364%.

When is the Piedmont (PDM) senior notes offering expected to close?

The offering is expected to close on November 20, 2025, subject to customary closing conditions.

How will Piedmont Realty Trust (PDM) use proceeds from the 2033 notes offering?

Piedmont intends to use net proceeds, together with borrowings under its $600M unsecured line and cash, to purchase outstanding 9.250% senior notes due 2028 validly tendered and accepted.

What happens if Piedmont's tender offer for the 2028 notes is not consummated?

If the tender offer is not consummated or proceeds exceed tendered 2028 notes, remaining net proceeds may be used for working capital, capital expenditures and other general corporate purposes.

Are the new 2033 notes guaranteed by Piedmont (PDM)?

Yes; the notes will be fully and unconditionally guaranteed on a senior unsecured basis by the company.