Piedmont Office Realty Trust Obtains $300 Million Delayed-Draw Unsecured Term Loan

Dec 19, 2013

ATLANTA, GA - December 19, 2013 - Piedmont Office Realty Trust, Inc. (NYSE: PDM) announced today that it closed on a new $300 million unsecured term loan with a delayed draw feature and a $200 million accordion.  U.S. Bank, N.A. and SunTrust Robinson Humphrey, Inc. served together as joint lead arrangers and joint book runners for this financing.  In addition to the joint lead arrangers, U.S. Bank serves as agent, SunTrust Bank as syndication agent, and BB&T and Union Bank as documentation agents. Additional participants in the facility are JPMorgan and Bank of America Merrill Lynch.

The loan has a maturity date of January 31, 2019 and a stated variable interest rate based upon LIBOR and the credit rating of the Company.  Based upon Piedmont's current credit rating, the interest rate for the new loan is LIBOR + 120 basis points.  

As of the date of closing, no loan funds were drawn.  Piedmont intends to use the majority of the proceeds to pay off a maturing mortgage loan, which opens for prepayment at the end of January 2014.  Funds from the new term loan will be available for Piedmont to draw through July 31, 2014.  

"We are pleased to have closed on this attractively-priced facility and to now have risk mitigation measures in place for the entire amount of our maturing debt in 2014.  Not only will our replacement debt be at a lesser cost to our 2014 maturities, but it will also represent a significant shift in our debt capital structure - to approximately 80% unsecured debt and 85% unencumbered NOI," stated Eddie Guilbert, Vice President, Finance & Strategic Planning for Piedmont.

About Piedmont:  Piedmont Office Realty Trust, Inc. (NYSE: PDM) is a fully-integrated and self-managed real estate investment trust (REIT) specializing in high-quality, Class A office properties located primarily in the ten largest U.S. office markets, including Chicago, Washington, D.C., New York, Boston, Los Angeles and Dallas.  As of September 30, 2013, Piedmont's 77 wholly-owned office buildings were comprised of over 21 million rentable square feet. The Company is headquartered in Atlanta, GA, with local management offices in each of its major markets. Piedmont is investment-grade rated by Standard & Poor's and Moody's and has maintained a low-leverage strategy while acquiring and disposing of properties throughout its fifteen year operating history. For more information, see www.piedmontreit.com.

Forward Looking Statements

Certain statements contained in this press release constitute forward-looking statements within the meaning of the federal securities laws. This information is subject to risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, these 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 our use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate," "believe," "continue" or similar words or phrases that are predictions of future events or trends and which do not relate solely to historical matters. Examples of 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 are detailed in the Company`s most recent Annual Report on Form 10-K for the period ended December 31, 2012, and other documents the Company files with the SEC.  You 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 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: Kerry Hughes
Company: Piedmont Office Realty Trust
Phone: + 1 770 418 8678
Email: Kerry.Hughes@Piedmontreit.com

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