Hudson Pacific amends some revolver calculations that affect covenants

By Angela McDaniels

Tacoma, Wash., May 20 - Hudson Pacific Properties, Inc. amended its $250 million revolving credit facility on May 14, according to an 8-K filing with the Securities and Exchange Commission.

The amendment, among other things,

• Modified the calculation of "total asset value" to give the company credit for the gross book value of some of its properties under certain circumstances in which the economic occupancy of those properties is less than 80%. This calculation impacts, among other things, determining the applicable margin and compliance with the facility's maximum leverage ratio, maximum secured debt leverage ratio and maximum recourse debt ratio;

• Modified the calculation of "unencumbered asset value" in the same way that the calculation of total asset value was modified. This calculation impacts, among other things, determining the company's compliance with the facility's maximum unencumbered leverage ratio;

• Corrected a technical error in the definition of total asset value to apply an annualization methodology to renovation properties in addition to construction-in-progress properties; and

• Contained an acknowledgement by the lenders that the company's 901 Market Street property would be treated as a renovation property for the purposes of the facility.

The amendment is retroactively effective as of March 31.

Hudson Pacific is a Los Angeles-based real estate investment trust focused on office and media and entertainment properties in California.

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