Parkway Announces Commitments for New Revolving Credit Facility

JACKSON, Miss., Oct. 27 /PRNewswire-FirstCall/ -- PARKWAY PROPERTIES, INC. (NYSE: PKY) announced today it has obtained aggregate commitments from 8 lenders totaling $320 million for a new unsecured revolving credit facility (the "Credit Facility"), which is well in excess of the Company's target aggregate commitment of $190 million.  The new Credit Facility would replace the existing unsecured revolving credit facility and term loan scheduled to mature on April 27, 2011, and is expected to close in the fourth quarter of 2010.  Additionally, the Company has obtained a $10 million commitment for a new working capital revolving credit facility under substantially the same terms and conditions as the new Credit Facility.  The credit facility, term loan, and working capital credit facility had a combined outstanding balance of $100 million as of September 30, 2010.  Closing of the new credit facilities is subject to normal and customary documentation and closing conditions.

(Logo: http://photos.prnewswire.com/prnh/20030513/PARKLOGO )

(Logo: http://www.newscom.com/cgi-bin/prnh/20030513/PARKLOGO )

The Company also has a $100 million interest rate swap associated with its current credit facility that expires March 31, 2011, which locks LIBOR at 3.635%.  The Company does not anticipate an extinguishment of this interest rate swap prior to its stated expiration.

Wells Fargo Securities LLC and JP Morgan Securities, LLC are acting as Joint Lead Arrangers and Joint Book Runners on the Credit Facility.  In addition, Wells Fargo Bank will act as Administrative Agent and JPMorgan Chase Bank, N.A. is acting as Syndication Agent.  Other lenders providing commitments include PNC Bank, Bank of America, N.A., US Bank, Trustmark Bank, First Tennessee Bank, and BancorpSouth.  The working capital revolving credit facility will be provided solely by PNC Bank.

Steven G. Rogers, President and Chief Executive Officer of Parkway, stated "The support and commitment we have received from this group of high quality lenders that have chosen to participate in our new credit facilities is a testament to Parkway's long operating history and excellent relationships with its facility participants.  We elected to renew our credit facility early due to favorable market conditions and significant current demand for the credit from the lending community."

Richard G. Hickson, Chief Financial Officer of Parkway, said "The commitments we received exceeded our goal and we are very pleased to have a credit facility structure that complements Parkway's continuing strategic transition to an operator / owner.  Our decision to reduce the size of the credit facility is consistent with our stated objective of structuring a more efficient facility that is sized to meet our needs while still providing future flexibility through an accordion option."

Similar to our existing revolving credit facility, the new Credit Facility requires the Company to comply with customary operating and financial covenants.  A summary of select major covenants, as well as other information regarding the new Credit Facility, is included in an exhibit to this press release.

Parkway Properties, Inc., a member of the S&P Small Cap 600 Index, is a self-administered real estate investment trust specializing in the operation, leasing, acquisition, and ownership of office properties. The Company is geographically focused on the Southeastern and Southwestern United States and Chicago. Parkway owns or has an interest in 64 office properties located in 11 states with an aggregate of approximately 13.2 million square feet of leasable space at October 27, 2010.  Included in the portfolio are 20 properties totaling 3.7 million square feet that are owned jointly with other investors, representing 28.0% of the portfolio.  Fee-based real estate services are offered through the Company's wholly-owned subsidiary, Parkway Realty Services, which also manages and/or leases approximately 2.6 million square feet for third-party owners at October 27, 2010.

Parkway Properties, Inc.'s press releases and additional information about the Company are available at www.pky.com.

Forward Looking Statement

Certain statements in this release that are not in the present or past tense or discuss the Company's expectations (including the use of the words anticipate, believe, forecast, intends or project) are forward-looking statements within the meaning of the federal securities laws and as such are based upon the Company's current belief as to the outcome and timing of future events. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. These forward-looking statements involve risks and uncertainties (some of which are beyond the control of the Company) and are subject to change based upon various factors, including but not limited to the following risks and uncertainties: changes in the real estate industry and in performance of the financial markets; the demand for and market acceptance of the Company's properties for rental purposes; the amount and growth of the Company's expenses; tenant financial difficulties and general economic conditions, including interest rates, as well as economic conditions in those areas where the Company owns properties; risks associated with joint venture partners; the risks associated with the ownership and development of real property; the failure to acquire or sell properties as and when anticipated; the outcome of claims and litigation involving or affecting the Company; and other risks and uncertainties detailed from time to time in the Company's SEC filings. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the Company's results could differ materially from those expressed in the forward-looking statements. The Company does not undertake to update forward-looking statements.

SOURCE Parkway Properties, Inc.