This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Parkway Properties, Inc. And Thomas Properties Group, Inc. Complete Merger Valued At $1.2 Billion

ORLANDO, Fla., Dec. 20, 2013 /PRNewswire/ -- Parkway Properties, Inc. (NYSE: PKY) ("Parkway") today announced the completion of the merger with Thomas Properties Group, Inc. (NYSE: TPGI) ("Thomas Properties") valued at approximately $1.2 billion. The transaction was approved by stockholders of each company at their respective stockholder meetings on December 17, 2013.  The combined company will continue to trade under Parkway's existing ticker symbol, "PKY", on the New York Stock Exchange.

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

As a result of the merger, each former share of Thomas Properties common stock has been converted into 0.3822 of a newly issued share of Parkway common stock and each former share of Thomas Properties limited voting stock has been converted into 0.3822 of a newly issued share of Parkway limited voting stock.  Former Thomas Properties stockholders hold approximately 25% of the combined company's equity, with continuing Parkway stockholders holding approximately 75% of the combined company's equity. Effective with the close of the market today, Thomas Properties' shares of common stock will no longer be traded on the New York Stock Exchange.

James R. Heistand, President and Chief Executive Officer of Parkway, stated, "We are thrilled to have completed this transaction as it represents a major step forward in Parkway's long-term strategy to be the premier owner and operator of Class A office buildings in the Sunbelt.  We are excited to add these ten high-class buildings to our portfolio, as they will strengthen our position in the Houston market and provide entry to the Austin market with scale.  We are confident that we will be able to capitalize on the strong office fundamentals in these two markets and successfully implement our local market operational strategy to unlock additional value at the assets."

Parkway also announced that it completed the sale of Thomas Properties' ownership interest in two office properties located in Philadelphia, Pennsylvania known as Commerce Square to Brandywine Realty Trust (NYSE: BDN) ("Brandywine"), based on a gross property value of $331.8 million.   Additionally, Parkway announced that it completed the sale of Thomas Properties' Four Points Centre and a contiguous land parcel located in Austin, Texas to Brandywine for a gross sale price of $47.3 million.  Parkway received approximately $93.5 million in net proceeds from the sale of these assets.     

James A. Thomas, the former Chairman, President and Chief Executive Officer of Thomas Properties, has joined Parkway's board of directors and will serve as Chairman of the board.  "I am very pleased with the completion of this transaction which brings together these two entities and results in a strong company with an attractive portfolio in desirable markets," stated Mr. Thomas.  Parkway's current executive officers will continue as the executive officers of the combined company.

Advisors

BofA Merrill Lynch served as exclusive financial advisor to Parkway, and Hogan Lovells US LLP acted as its legal counsel. Morgan Stanley & Co. LLC served as exclusive financial advisor to Thomas Properties, and Skadden, Arps, Slate, Meagher & Flom LLP acted as its legal counsel.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs