Highwoods Properties Secures $400 Million Credit Facility

Highwoods Properties, Inc., an owner and operator of suburban office properties in the Southeast and NAIOP's 2009 Developer of the Year, announced that it has closed on a new, $400 million unsecured revolving credit facility.

The new facility, which matures in February 2013, replaces the Company's existing $450 million facility which was scheduled to mature in May 2010. The new facility includes an accordion feature that allows for an additional $50 million of borrowing capacity subject to additional lender commitments, the Company noted in a release. The Company currently has no amounts outstanding under the new credit facility and has no debt maturities until 2011 when a $137.5 million unsecured term loan matures. This assumes the Company exercises its unilateral extension options on its $70 million secured construction facility.

Ed Fritsch, President and Chief Executive Officer of Highwoods Properties, said, "We are pleased to have closed on our new credit facility and appreciate the confidence shown in Highwoods by the 12 participating banks. We proactively decided to nominally decrease the initial size of the new facility as our development pipeline is significantly smaller than in 2006 when our previous credit facility was cast. Our new revolving credit facility, along with available cash, strengthens our ability to capitalize on strategic acquisitions and build-to-suit development opportunities that enhance long-term value for our shareholders."

The interest rate on the Company's new facility increased from LIBOR plus 80 basis points to LIBOR plus 290 basis points and the annual facility fee increased from 20 basis points to 60 basis points. These terms reflect current market rates. Other terms, covenants and conditions in the new facility are substantially the same as the previous facility.

Banc of America Securities and Wells Fargo Securities served as Joint Lead Arrangers and Joint Book Runners on the new credit facility with Bank of America, N.A. serving as Administrative Agent and Wells Fargo Bank, National Association serving as Syndication Agent. Branch Banking & Trust Co. and PNC Bank are Co-Documentation Agents. Other lenders include US Bank, Regions Bank, Capital One, N.A./Chevy Chase Bank, Comerica Bank, Morgan Stanley Bank, N.A., RBC Bank (USA), Union Bank, N.A., and First Tennessee Bank.

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