HIW · 10-Q · 2026Q1 · Full report

Refinancing Risk and Covenants

HIGHWOODS PROPERTIES, INC. · 2026-04-28 · Importance 66 · Surprise 48

The Company has no debt scheduled to mature within one year from April 28, 2026 except for $300.0 million principal amount of unsecured notes maturing in March 2027, creating a near-term refinancing need. The Company discloses customary operating covenants in its revolver and term loans and cross-default provisions in certain unsecured debt agreements that could be triggered if defaults exceed specified thresholds (for example, more than $35.0 million in some circumstances). Upon event of default, lenders holding specified percentages of commitments can accelerate borrowings under the revolver and unsecured note trustees or holders of at least 25% in principal amount of any series of notes can accelerate principal after notice and cure periods. The Company warns that inability to refinance at maturity or refinancing at higher rates could materially increase interest expense and impose tighter covenants restricting development, acquisitions, repurchases and distributions.

Key facts

• Certain unsecured debt agreements contain cross-default provisions giving unsecured lenders the right to declare a default if the Company is in default under more than $35.0 million with respect to other loans in some circumstances.
• Upon an event of default on the revolving credit facility, lenders having at least 51.0% of total commitments can accelerate all borrowings then outstanding.
• The indenture governing the Operating Partnership’s outstanding notes permits the trustee or holders of at least 25.0% in principal amount of any series of notes to accelerate principal upon written notice of an uncured default after 60 days.
• The Company is currently in compliance with financial covenants and other requirements with respect to its consolidated debt.

Impact estimates