Highwoods Properties Reports New Financial Obligations & Agreements

TL;DR

**Highwoods Properties just made big financial moves, entering and ending key agreements, creating new debt.**

AI Summary

On January 25, 2024, Highwoods Properties, Inc. and its subsidiary, Highwoods Realty Limited Partnership, filed an 8-K to report the entry into and termination of a material definitive agreement, as well as the creation of a direct financial obligation. This indicates significant changes in their financial commitments and potentially their operational strategy, which could impact the company's future earnings and debt levels. Investors should monitor the details of these agreements as they could affect the stock's valuation.

Why It Matters

This filing signals important shifts in Highwoods Properties' financial structure and contractual obligations, which could influence its profitability and risk profile.

Risk Assessment

Risk Level: medium — The filing indicates both the entry into and termination of material agreements, along with new financial obligations, suggesting significant but unspecified changes that could carry moderate risk.

Analyst Insight

A smart investor would await further details on the nature and financial impact of these material agreements and obligations before making significant investment decisions, as the current filing lacks specific financial figures.

Key Players & Entities

• HIGHWOODS PROPERTIES, INC. (company) — registrant of the 8-K filing
• HIGHWOODS REALTY LIMITED PARTNERSHIP (company) — subsidiary registrant of the 8-K filing
• January 25, 2024 (date) — date of earliest event reported and filing date
• Maryland (company) — state of incorporation for Highwoods Properties, Inc.
• North Carolina (company) — state of incorporation for Highwoods Realty Limited Partnership

Forward-Looking Statements

• Highwoods Properties will provide more details on the specific agreements and obligations in its next quarterly report. (HIGHWOODS PROPERTIES, INC.) — medium confidence, target: Q1 2024 Earnings Report

FAQ

Key Financial Figures

• $750.0 million — we entered into an amended and restated $750.0 million unsecured revolving credit facility, wh

Filing Documents

• hiw-20240125.htm (8-K) — 34KB
• ex10thirdamendmenttosixtha.htm (EX-10) — 1567KB
• 0000921082-24-000003.txt ( ) — 1987KB
• hiw-20240125.xsd (EX-101.SCH) — 2KB
• hiw-20240125_def.xml (EX-101.DEF) — 15KB
• hiw-20240125_lab.xml (EX-101.LAB) — 29KB
• hiw-20240125_pre.xml (EX-101.PRE) — 16KB
• hiw-20240125_htm.xml (XML) — 4KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. On January 25, 2024, we entered into an amended and restated $750.0 million unsecured revolving credit facility, which replaced our previously existing $750.0 million revolving credit facility. Our new revolving credit facility is scheduled to mature in January 2028 (but can be extended for two additional six-month periods at our option assuming no defaults have occurred). The interest rate on our newly modified revolving credit facility remains SOFR plus a related spread adjustment of 10 basis points and a borrowing spread of 85 basis points, based on current credit ratings, and the annual facility fee remains 20 basis points. The interest rate and facility fee are based on the higher of the publicly announced ratings from Moody's Investors Service or Standard & Poor's Ratings Services. Subject to written consent of the lenders, we may elect to amend the newly modified revolving credit facility no later than May 15, 2024 to provide that the interest rate may be adjusted upward or downward by up to 2.5 basis points subject to satisfaction of certain to-be-determined sustainability goals with respect to the ongoing reduction of greenhouse gas emissions. The financial and other covenants under our newly modified facility are substantially similar to our previous credit facility. We use our revolving credit facility for working capital purposes and for the short-term funding of our development and acquisition activity and, in certain instances, the repayment of other debt. The continued ability to borrow under the revolving credit facility allows us to quickly capitalize on strategic opportunities at short-term interest rates. The foregoing description of the amended and restated credit facility is not complete and is qualified in its entirety by reference to the full text of the agreement, which is filed as Exhibit 10.1 hereto and incorporated herein by reference.

02. Termination of a Material Definitive Agreement

Item 1.02. Termination of a Material Definitive Agreement. See Item 1.01. Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. See Item 1.01.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits No. Description 10 T hird Amendment to Sixth Amended and Restated Credit Agreement, dated as of January 2 5 , 202 4 , by and among the Company, the Operating Partnership, Bank of America, N.A., as Administrative Agent, Wells Fargo Bank, National Association, as Co-Syndication Agent, PNC Bank, National Association, as Co-Syndication Agent, and the Other Lenders named therein 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, each of the registrants has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. HIGHWOODS PROPERTIES, INC. By: /s/ Jeffrey D. Miller Jeffrey D. Miller Executive Vice President, General Counsel and Secretary HIGHWOODS REALTY LIMITED PARTNERSHIP By: Highwoods Properties, Inc., its general partner By: /s/ Jeffrey D. Miller Jeffrey D. Miller Executive Vice President, General Counsel and Secretary Dated: January 25, 2024

View Full Filing

View this 8-K filing on SEC EDGAR