Highwoods (NYSE:HIW) recast a $150 million unsecured bank term loan, extending its maturity from May 2027 to June 2031, including two one-year extension options at the company’s discretion if no default occurs.
Revised pricing applies to its term loans and $750 million revolving credit facility, with small rate adjustments tied to greenhouse gas emission reduction goals.
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AI-generated analysis. Not financial advice.
Positive
Extended $150 million unsecured term loan maturity from May 2027 to June 2031
Secured committed pricing on $150M and $200M term loans and $750M revolver
Interest margins can move 2.5 bps based on sustainability performance
Negative
None.
News Market Reaction – HIW
+1.01%
1 alert
+1.01%News Effect
On the day this news was published, HIW gained 1.01%, reflecting a mild positive market reaction.
Recast term loan:$150 millionNew loan spread:SOFR + 90 bpsOther term loan:$200 million at SOFR + 95 bps+5 more
8 metrics
Recast term loan$150 millionUnsecured bank term loan maturity extended from May 2027 to June 2031
New loan spreadSOFR + 90 bpsNewly extended $150 million unsecured bank term loan
Other term loan$200 million at SOFR + 95 bpsExisting unsecured bank term loan pricing
Revolver facility$750 million at SOFR + 85 bpsUnsecured revolving credit facility interest margin
Sustainability adjustment±2.5 basis pointsRate adjustment tied to greenhouse gas emission reduction goals
Extended maturityJune 2031Maturity for recast $150 million term loan, from May 2027
Extension optionsTwo 1-year optionsAt the company’s option, subject to no defaults
52-week range$20.45–$32.76Pre-news 52-week low and high for HIW shares
Market Reality Check
Price:$27.88Vol:Volume 1,346,893 is close...
normal vol
$27.88Last Close
VolumeVolume 1,346,893 is close to the 20-day average of 1,397,016, suggesting no unusual trading interest ahead of this refinancing update.normal
TechnicalShares trade slightly above the 200-day MA, at 26.96 vs. 26.57, placing HIW near a longer-term equilibrium level before this term-loan recast.
Peers on Argus
Office REIT peers showed mixed moves, with names like KRC and CUZ up while CDP, ...
Office REIT peers showed mixed moves, with names like KRC and CUZ up while CDP, DEI and SLG were down, indicating stock-specific rather than sector-wide momentum around HIW’s bank term-loan recast.
Declared $0.50 common quarterly dividend and Series A preferred dividend.
Pattern Detected
Recent corporate and capital allocation updates often saw muted or mixed price reactions, with several positive actions (asset sale, buyback, dividends) not consistently translating into gains.
Recent Company History
Over the past few months, Highwoods reported a series of balance-sheet and capital allocation developments. On Apr 22, it announced a $250 million stock repurchase program and declared a $0.50 common quarterly dividend, yet shares slipped modestly. First-quarter 2026 results on Apr 28 coincided with a larger one-day decline. By contrast, the May 12 sale of Bridgestone Tower for $255 million and expected $75 million gain was followed by a positive reaction. Today’s term-loan recast fits this stream of balance-sheet-focused actions.
Regulatory & Risk Context
Active S-3 Shelf
Shelf Active
Active S-3 Shelf Registration
2026-02-10
Highwoods has an effective automatic shelf registration on Form S-3ASR filed on 2026-02-10, allowing the company and selling stockholders to offer various securities from time to time. The shelf has been used at least once, as indicated by a 424B5 filing on 2026-02-11, providing flexibility to issue equity or debt for general corporate purposes.
Market Pulse Summary
This announcement recast a $150 million unsecured term loan, extending maturity from May 2027 to Jun...
Analysis
This announcement recast a $150 million unsecured term loan, extending maturity from May 2027 to June 2031 with SOFR-based spreads and sustainability-linked rate adjustments of up to ±2.5 basis points. It follows recent moves such as a $250 million buyback authorization and a $255 million asset sale. Investors may watch future use of the effective S-3ASR shelf and any additional debt or equity issuance alongside leasing and earnings trends.
Key Terms
sofr, basis points, unsecured bank term loan, unsecured revolving credit facility, +1 more
5 terms
sofrfinancial
"The interest rate is now SOFR plus 90 basis points on our newly extended..."
The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.
basis pointsfinancial
"The interest rate is now SOFR plus 90 basis points on our newly extended..."
Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.
unsecured bank term loanfinancial
"has executed a recast of a $150 million unsecured bank term loan by extending..."
An unsecured bank term loan is a fixed-schedule loan from a bank that is not backed by specific company assets — think of it as a formal IOU with regular repayment dates but no collateral pledged. It matters to investors because such loans increase a company’s debt burden and represent higher risk for lenders (and lower repayment priority in bankruptcy) than secured debt, which can influence credit costs, cash flow and stock risk.
unsecured revolving credit facilityfinancial
"and SOFR plus 85 basis points on our $750 million unsecured revolving credit facility."
A revolving credit facility is a line of borrowing that a company can draw from, repay, and draw again up to a set limit; “unsecured” means the loans are not backed by specific assets as collateral. Investors care because it acts like a corporate credit card—giving short‑term cash flexibility to cover operations or unexpected needs—while signaling lenders’ confidence and affecting interest costs, default risk, and the company’s financial stability.
greenhouse gas emissionstechnical
"sustainability goals with respect to the ongoing reduction of greenhouse gas emissions."
Greenhouse gas emissions are the gases a company releases into the air—like carbon dioxide or methane—that trap heat in the atmosphere and contribute to global warming. For investors, these emissions matter because they can lead to higher regulatory costs, fines, shifting consumer preferences, and physical risks (like supply-chain disruptions), or create opportunities in low-carbon products; think of emissions as a company’s climate footprint that can affect future profits and value.
AI-generated analysis. Not financial advice.
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RALEIGH, N.C., June 04, 2026 (GLOBE NEWSWIRE) -- Highwoods Properties, Inc. (NYSE:HIW) has executed a recast of a $150 million unsecured bank term loan by extending the maturity date from May 2027 to June 2031, inclusive of two one-year extension options that are exercisable at the Company’s option assuming no defaults have occurred.
The interest rate is now SOFR plus 90 basis points on our newly extended $150 million term loan, SOFR plus 95 basis points on our $200 million term loan and SOFR plus 85 basis points on our $750 million unsecured revolving credit facility. In each case, the interest rate may be adjusted upward or downward by 2.5 basis points depending upon whether or not we achieve certain pre-determined sustainability goals with respect to the ongoing reduction of greenhouse gas emissions.
BofA Securities, Inc., Wells Fargo Securities, LLC, PNC Capital Markets LLC, T.D. Bank, N.A., Truist Securities, Inc., U.S. Bank National Association and JPMorgan Chase Bank, N.A. served as Joint Lead Arrangers on the newly extended term loan, with BofA Securities, Inc., Wells Fargo Securities, LLC and PNC Capital Markets LLC serving as Joint Bookrunners. Bank of America, N.A. is Administrative Agent and Wells Fargo Bank, National Association and PNC Bank, National Association are Co-Syndication Agents. TD Bank, N.A., Truist Bank, U.S. Bank National Association and JPMorgan Chase Bank, N.A. served as Co-Documentation Agents. First Citizens Bank served as Senior Managing Agent. Other lenders include First Horizon Bank and Associated Bank, National Association.
About Highwoods Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded (NYSE:HIW), fully-integrated office real estate investment trust (“REIT”) that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond and Tampa. Our vision is to be a leader in the evolution of commercial real estate for the benefit of our customers, our communities and those who invest with us. Our mission is to create environments and experiences that inspire our teammates and our customers to achieve more together. We are in the work-placemaking business and believe that by creating exceptional environments and experiences, we can deliver greater value to our customers, their teammates and, in turn, our shareholders. For more information about Highwoods, please visit our website at www.highwoods.com.
Contact:
Brendan Maiorana
Executive Vice President and Chief Financial Officer
brendan.maiorana@highwoods.com
919-872-4924
FAQ
What did Highwoods (NYSE:HIW) announce on June 4, 2026 about its bank term loan?
Highwoods announced it recast a $150 million unsecured bank term loan, extending its maturity to June 2031. According to the company, the loan now includes two one-year extension options, exercisable at Highwoods’ option, provided no defaults have occurred.
When does Highwoods’ recast $150 million unsecured term loan now mature?
The recast $150 million unsecured term loan now matures in June 2031. According to Highwoods, the structure also includes two additional one-year extension options, which the company may exercise at its discretion as long as no events of default exist.
What are the new interest rates on Highwoods (HIW) loans and credit facility?
The $150 million term loan now bears interest at SOFR plus 90 basis points. According to Highwoods, the $200 million term loan is priced at SOFR plus 95 basis points, and the $750 million unsecured revolving credit facility at SOFR plus 85 basis points.
How do sustainability goals affect Highwoods’ loan interest rates?
Highwoods’ loan interest margins can adjust by 2.5 basis points based on sustainability performance. According to the company, rates on the term loans and revolving credit facility may move up or down depending on achieving pre-determined greenhouse gas emission reduction goals.
Which banks arranged Highwoods’ June 2026 $150 million term loan recast?
Multiple major banks arranged Highwoods’ recast $150 million term loan. According to the company, BofA Securities, Wells Fargo Securities, PNC Capital Markets, TD Bank, Truist Securities, U.S. Bank, and JPMorgan Chase served as Joint Lead Arrangers, with additional roles across the syndicate.
