KBS Real Estate amends loan to increase revolver to $145 million

By Jennifer Chiou

New York, July 3 - KBS Real Estate Investment Trust II, Inc. entered into on June 21 an amendment to its revolving loan facility with Wells Fargo Bank, NA, bringing the capacity to $145 million from $100 million, according to an 8-K filing with the Securities and Exchange Commission.

Of the capacity, $105 million is non-revolving debt and $40 million is revolving debt.

The filing added that the facility matures on June 21, 2017, with two one-year extension options.

The loan bears interest at one-month Libor plus 180 basis points, down from a spread of 300 bps.

The 8-K noted that the initial swap agreement effectively fixes the interest rate on $45 million of the loan at 3.97% through April 30, 2014. The borrowers also entered into a second swap agreement to hedge the interest rate on $60 million, the balance of the non-revolving debt, at 3.1% through June 1, 2017.

KBS REIT Properties II, LLC, the wholly owned subsidiary through which the Newport Beach, Calif.-based borrower indirectly owns all of its real estate assets, is providing a guaranty of 20% of the outstanding principal balance under the amended and restated loan.

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