Hudson Pacific gets $600 million revolver, $850 million restated loans

By Wendy Van Sickle

Columbus, Ohio, March 19 – Hudson Pacific Properties, Inc.’s operating partnership Hudson Pacific Properties, LP amended and restated its credit agreement on March 13 to provide for a four-year $600 million revolving credit facility and $850 million of term loans, according to an 8-K filing with the Securities and Exchange Commission.

The term loans are in equal amounts with equal tenors as those provided for by the existing credit agreement and include a $300 million term loan A due April 1, 2020; $350 million term loan B due April 1, 2022; $75 million term loan C due Nov. 17, 2020; and $125 million term loan D due Nov. 17, 2022.

Hudson has the option to extend the revolver by one additional year and the term loan A for two additional one-year periods.

Previously, Hudson’s revolving capacity was $400 million.

The operating partnership may increase availability under the credit agreement up to a total of $2 billion.

Revolver borrowings bear interest at Libor plus 105 basis points to 150 bps, depending on leverage ratio.

Term A, B and D loans bear interest at Libor plus 120 bps to 170 bps, and term C loans at Libor plus 130 bps to 220 bps, both based on leverage ratio.

If the company maintains a credit rating for its senior unsecured long-term debt, the operating partnership may make an irrevocable election to change the interest rates to a ratings-based grid that would result in revolving interest of Libor plus 82.5 bps to 155 bps; term loan A, B and C interest of Libor plus 90 bps to 175 bps; and term loan C interest of Libor plus 90 bps to 185 bps.

The revolver’s commitment fee is 15 bps to 30 bps, if based on leverage, or 12.5 bps to 30 bps, if based on ratings.

Wells Fargo Securities, LLC and Bank of America Merrill Lynch are the active joint lead arrangers and bookrunners. U.S. Bank NA and KeyBanc Capital Markets, Inc. are joint lead arrangers.

Bank of America, NA is syndication agents. U.S. Bank, KeyBanc, Goldman Sachs Bank USA, Morgan Stanley Bank, NA, Barclays Bank plc, Royal Bank of Canada and Fifth Third Bank are documentation agents.

Well Fargo Bank, NA is the administrative agent.

Proceeds may be used to pay development costs connected to properties owned by the borrower or any subsidiary, for acquisitions, working capital and general corporate purposes.

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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