Piedmont Realty Trust Announces $200 Million Exchangeable Senior Notes Offering

Atlanta, GA, Sept. 14, 2026 /CourierPR/ -- Piedmont Realty Trust, a real estate investment company, has announced plans to issue $200 million in exchangeable senior notes due in 2031. The notes, which will be offered to qualified institutional buyers, are intended to fund the redemption of the company's existing 9.250% senior notes due 2028. Piedmont will fully and unconditionally guarantee the notes on a senior, unsecured basis.

The notes will accrue interest payable semi-annually and mature on February 1, 2031, unless earlier repurchased, redeemed, or exchanged. Noteholders will have the right to exchange their notes in certain circumstances and during specified periods. The Operating Partnership will settle exchanges by paying or delivering, as applicable, cash or a combination of cash and shares of Piedmont’s common stock, at the Operating Partnership’s election.

The notes will be redeemable, in whole or in part, for cash at the Operating Partnership’s option at any time, and from time to time, on or after August 6, 2029, and on or before the 60th scheduled trading day immediately before the maturity date, provided that the last reported sale price per share of Piedmont’s common stock exceeds 130% of the exchange price for a specified period of time and certain other conditions are satisfied. Additionally, the notes will be redeemable at the Operating Partnership’s option at any time to the extent necessary to preserve Piedmont’s status as a real estate investment trust for U.S. federal income tax purposes, subject to certain conditions.

If certain corporate events that constitute a “fundamental change” occur, noteholders may require the Operating Partnership to repurchase their notes for cash. The repurchase price will be equal to the principal amount of the notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the applicable repurchase date.

The Operating Partnership intends to use a portion of the net proceeds from this offering, together with the net proceeds from the settlement of certain forward sale transactions entered into under Piedmont’s at-the-market equity program, cash on hand, and borrowings under its line of credit, to redeem all of its outstanding 9.250% senior notes due 2028 and pay the applicable make-whole premium and accrued and unpaid interest with respect thereto. If the initial purchasers exercise their option to purchase additional notes, the Operating Partnership will use the additional proceeds to redeem its outstanding 2028 notes and proportionally decrease the borrowings under its line of credit used to redeem the outstanding 2028 notes.

Furthermore, the Operating Partnership expects to use up to approximately $50 million of the net proceeds from the offering to repurchase shares of Piedmont’s common stock from certain purchasers of the notes in privately negotiated transactions effected through one of the initial purchasers or its affiliate concurrently with the pricing of the notes. The price per share of Piedmont’s common stock repurchased in the concurrent share repurchase is expected to equal the last reported sale price per share of Piedmont’s common stock on the New York Stock Exchange as of the date of the pricing of the notes.

The offer and sale of the notes, the guarantee, and any shares of Piedmont’s common stock issuable upon exchange of the notes have not been registered under the Securities Act or any other securities laws, and the notes, the guarantee, and any such shares cannot be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws. Although the Operating Partnership and Piedmont intend to enter into a registration rights agreement pursuant to which Piedmont will agree to register, under the Securities Act, the resale of the shares of Piedmont’s common stock, if any, issuable upon exchange of the notes, the registration rights agreement will contain significant limitations, and a resale registration statement may not be available at the time investors wish to resell the shares of Piedmont’s common stock, if any, issuable upon exchange of their notes.

Piedmont Realty Trust, a fully integrated, self-managed real estate investment company, is focused on delivering an exceptional office environment. The company is known for its hospitality-driven approach and commitment to transforming buildings into premier “Piedmont PLACEs” that enhance each client’s workplace experience.