American Assets extends term loan, ups borrowings to $225 million

By Wendy Van Sickle

Columbus, Ohio, Jan. 5 – American Assets Trust, Inc. and American Assets Trust, LP amended and restated their credit agreement, extending the maturity date to Jan. 5, 2025 from March 1, 2023 and increasing the fully drawn borrowings to $225 million from $150 million on Thursday, according to a news release and an 8-K filing with the Securities and Exchange Commission.

The unsecured term loan has one 12-month extension option.

The amendment also transitions the interest benchmark to SOFR from Libor. The margin above SOFR ranges from 120 basis points to 190 bps, depending on the operating partnership’s consolidated leverage ratio.

Prior to amending and restating the term loan, the company entered into interest rate swaps that are intended to fix the interest rate at about 5.47% for the first year and 5.57% for the second year, subject to adjustments based on the company’s consolidated leverage ratio.

U.S. Bank NA is the administrative agent and is a lead arranger and bookrunner along with Mizuho Bank, Ltd., PNC Capital Markets LLC and Wells Fargo Securities, LLC.

Mizuho, PNC Bank, NA and Wells Farce Bank, NA are the co-syndication agents.

American Assets is a San Diego-based real estate investment trust focused on retail, office and residential properties, primarily in Southern California, Northern California, Oregon, Washington and Hawaii.

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