Parkway Closes New Revolving Credit Facility

JACKSON, Miss., Jan. 31, 2011 /PRNewswire/ -- PARKWAY PROPERTIES, INC. (NYSE: PKY) announced today it has closed a new $190 million unsecured revolving credit facility (the "Credit Facility").  Additionally, the Company closed a new $10 million working capital revolving credit facility under substantially the same terms and conditions as the new Credit Facility, bringing the combined size of the new credit facilities to $200 million.  The new credit facilities replaced the former unsecured revolving credit facility, term loan, and working capital credit facility that were scheduled to mature on April 27, 2011, and had a combined outstanding balance of $140.3 million immediately prior to closing of the new credit facilities.

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Richard G. Hickson, Chief Financial Officer of Parkway, said, "We are pleased to have new credit facilities in place that are both more efficient for Parkway and better support our continued strategic transition to an operator / owner.  We thank all of the participating lenders for their continued support and commitment to Parkway."

The Company has a $100 million interest rate swap associated with the credit facilities that expires March 31, 2011, locking LIBOR at 3.635%.  The Company does not anticipate an extinguishment of this interest rate swap prior to the stated expiration.

Wells Fargo Securities and J.P. Morgan Securities LLC acted as Joint Lead Arrangers and Joint Book Runners on the Credit Facility.  In addition, Wells Fargo Bank, N.A. acted as Administrative Agent and JPMorgan Chase Bank, N.A. acted as Syndication Agent.  Other participating lenders include PNC Bank, N.A., Bank of America, N.A., U.S. Bank, N.A., Trustmark National Bank, and BancorpSouth Bank.  The working capital revolving credit facility was provided solely by PNC Bank, N.A.

Similar to the Company's prior 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 provided in the attached table at the end of 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 65 office properties located in 11 states with an aggregate of approximately 13.7 million square feet of leasable space at January 31, 2011.  Included in the portfolio are 21 properties totaling 4.2 million square feet that are owned jointly with other investors, representing 30.5% 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 1.8 million square feet for third-party owners at January 31, 2011.

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

SOURCE Parkway Properties, Inc.