KBS REIT gets $500 million two-year portfolio loan facility

By Sarah Lizee

Olympia, Wash., April 2 – KBS Real Estate Investment Trust II, Inc. entered into a $500 million two-year portfolio loan facility, of which $375 million is term debt and $125 million is revolving debt.

The company entered into the agreement through its indirect wholly owned subsidiaries on Thursday with Bank of America, NA as administrative agent, arranger and bookrunner, according to an 8-K filing with the Securities and Exchange Commission.

The facility matures on March 29, 2020, with two 12-month extension options.

Borrowings bear interest at one-month Libor plus 145 basis points.

At closing, $364 million was used to pay off and address the upcoming 2018 loan maturities for the existing amended and restated portfolio revolving loan facility, union bank plaza mortgage loan, portfolio mortgage loan #1, portfolio mortgage loan #3 and 300-600 campus drive revolving loan.

The remaining amount was used to pay origination fees and accrued interest, with any excess proceeds held by the company for liquidity management.

The portfolio loan facility may be used for the repayment of debt, for tenant improvements, leasing commissions and capital improvements, for working capital or liquidity management, among other things.

The REIT is based in Newport Beach, Calif.

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