Colony Capital signs four-year $850 million revolving credit facility

By Wendy Van Sickle

Columbus, Ohio, April 5 – Colony Capital, Inc.’s operating company, Colony Capital Operating Co., entered into an amended and restated credit agreement on Thursday providing for an up to $850 million four-year revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America Merrill Lynch and JPMorgan Chase Bank, NA acted as joint lead arrangers and joint bookrunners and Bank of America, NA as syndication agent. JPMorgan is the administrative agent.

Borrowings will bear interest at Libor plus 250 basis points, and there is a commitment fee of either 25 bps or 35 bps, depending on utilization.

Colony may request to increase the facility up to a total of $1,275,000,000.

The maximum amount available for borrowing at any time under the amended and restated credit agreement is limited to a borrowing base valuation of certain of Colony’s investment assets.

The company must comply with covenants including a minimum tangible net worth, a minimum ratio of EBITDA to fixed charges, a minimum interest coverage ratio and a maximum ratio of consolidated total debt to consolidated total assets.

The facility matures March 31, 2020.

Proceeds may be used to finance the investment activities, working capital needs and general corporate purposes of the company.

The agreement replaces the company’s credit agreement dated Aug. 6, 2013 with JPMorgan as administrative agent.

The real estate investment trust is based in Los Angeles.

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