KBS REIT locks up $250 million two-year loans at Libor plus 180 bps

By Susanna Moon

Chicago, Dec. 20 - KBS Real Estate Investment Trust, Inc. closed a $250 million two-year portfolio loan Friday with unaffiliated lenders through its indirect wholly owned subsidiaries, according to an 8-K filing with the Securities and Exchange Commission.

The loan portfolio consists of $187.5 million of non-revolving debt and $62.5 million of revolving debt.

As of Friday, $185 million of the non-revolving debt was funded. The company used $152.2 million of the proceeds to repay debt. The remaining $2.5 million of non-revolving debt and the $62.5 million of revolving debt will be available for future disbursements upon the addition of real estate properties as additional collateral prior to March 31, 2014.

The loan matures on Jan. 1, 2016 and has two one-year extension options.

Interest on the loans is Libor plus 180 basis points.

The company may prepay the loan in whole at any time or in part from time to time.

KBS REIT Properties, LLC, the company's indirect wholly owned subsidiary through which the company indirectly owns all of its real estate assets, is providing a guaranty of 25% of the outstanding principal amount.

The portfolio loan is initially secured by ADP Plaza, City Gate Plaza, Cumberland Business Center, Great Oaks Center, Meridian Tower, North Creek Parkway Center, Rivertech I & II, Riverview Business Center I & II, Royal Parkway Center I & II, Royal Ridge Building, Sabal VI Building, University Park Buildings and Woodfield Preserve Office Center.

The REIT is based in Newport Beach, Calif.

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