City Office REIT obtains $40 million more commitments under agreement

By Tali Rackner

Norfolk, Va., July 17 – City Office REIT, Inc., through City Office REIT Operating Partnership, LP, entered into a first amendment and joinder to its amended and restated credit agreement on Friday, increasing the authorized borrowing capacity to $75 million from $35 million, according to an 8-K filing with the Securities and Exchange Commission.

BMO Harris Bank, NA agreed to issue $25 million of new commitments and Royal Bank of Canada agreed to issue $15 million of new commitments under the agreement.

The facility has an up to $150 million accordion feature.

Initial interest is Libor plus 225 basis points. The spread over Libor is based on City Office’s leverage ratio.

The amended credit agreement matures on June 26, 2018 but may be extended by one year.

KeyBank NA is the lead arranger and bookrunner.

The amendment also adds a new negative covenant tying distributions by the company to core funds from operations and adds a new affirmative covenant requiring a minimum number of collateral properties.

City Office REIT is a Vancouver, B.C., real estate company.

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