Colony Financial enters into $360 million revolving credit facility

By Jennifer Chiou

New York, Aug. 8 - Colony Financial, Inc. entered into an up to $360 million secured revolving credit facility on Tuesday with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

J.P. Morgan Securities LLC and Bank of America Merrill Lynch are the bookrunners.

There is an expansion option to increase the facility to up to $600 million.

The revolver replaces the company's prior facility with Bank of America, NA.

Borrowings will bear interest at Libor plus 275 basis points or 300 bps. There is a commitment fee of 40 bps or 50 bps, depending on unused borrowing capacity.

The revolver will terminate on Aug. 5, 2016. If there are any revolving loans outstanding on that date, they will automatically convert to term loans due Aug. 6, 2018 bearing the same interest rate as the revolving loans.

Colony Financial and its consolidated subsidiaries are required to maintain a minimum consolidated tangible net worth greater than or equal to the sum of (a) $1,178,000,000 and (b) 80% of the proceeds received by the company from any offering of its common stock after June 30; EBITDA to fixed charges for any period of four consecutive fiscal quarters of not less than 2.25 to 1.0; minimum liquidity of not less than $5 million; and a ratio of consolidated total debt to consolidated total assets not to exceed 50%.

Colony Financial is a Santa Monica, Calif.-based real estate finance company.

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