Highwoods stock sale to help pay down debt
Published: Tue, Sep. 09, 2008 12:30AM
Modified Tue, Sep. 09, 2008 05:35AM
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closeRALEIGH -- Highwoods Properties, the biggest owner and operator of suburban offices in the Southeast, is selling 5.5 million shares of its common stock -- a move that will help it pay down debt and redeem preferred stock.
The Raleigh real-estate investment trust said Monday that it plans to use proceeds from the sale to repay about $260 million borrowed through a $450 million unsecured revolving credit facility.
The company then plans to pay off about $170 million in debt due next year. It owes about $50 million of unsecured debt maturing Feb. 1, and $120 million of a secured loan due in November.
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Paying the debt will enable Highwoods to borrow more money to fund development, buy buildings and finance other corporate expenses. The offering is expected to close Sept. 12.
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Staff writer Jack Hagel
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