Cousins Properties gets $950 million term loan for purchase agreement

By Jennifer Chiou

New York, July 29 - Cousins Properties Inc. entered into a loan agreement with JPMorgan Chase Bank, NA providing for up to $950 million under a new term loan facility, according to an 8-K filing with the Securities and Exchange Commission.

There is a $150 million accordion feature.

Proceeds, along with cash on hand, will be used to finance the purchase of office buildings in Texas.

The company entered into a purchase and sale contract with Crescent Crown Greenway Plaza SPV, LLC, Crescent Crown Seven Greenway SPV, LLC, Crescent Crown Nine Greenway SPV, LLC and Crescent Crown Edloe Garage SPV, LLC, affiliates of Crescent Real Estate Holdings, LLC, to purchase office complex Greenway Plaza for about $950 million.

The company also agreed to purchase another office building, also in Texas, for roughly $160 million.

The term loan matures one year after closing of the acquisition and has two one-year extension options.

Borrowings will bear interest at Libor plus 150 basis points to 225 bps, depending on the company's leverage ratio.

The company has to maintain an interest coverage ratio of at least 2.00 to 1.00, a fixed-charge coverage ratio of at least 1.40 to 1.00, rising to 1.50 to 1.00 effective Feb. 28, 2016 and thereafter, and a consolidated leverage ratio of no more than 0.60 to 1.00.

Cousins is an Atlanta-based real estate investment trust that invests in office and retail projects.

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