American Assets restates $450 million agreement, amends another loan

By Wendy Van Sickle

Columbus, Ohio, Jan. 9 – American Assets Trust, Inc. and American Assets Trust, LP entered into a second amended and restated credit agreement on Tuesday that provides for a $350 million revolving line of credit and a $100 million term loan, according to an 8-K filing with the Securities and Exchange Commission.

Wells Fargo Securities, LLC and Bank of America Merrill Lynch acted as joint bookrunners and as lead arrangers along with U.S. Bank NA, PNC Capital Markets LLC.

Wells Fargo Bank, NA acted as syndication agent; PNC and U.S. Bank as co-documentation agents; and Bank of America as administrative agent.

Revolver borrowings bear interest at Libor plus a margin ranging from 105 basis points to 150 bps, and the revolving facility fee ranges from 15 bps to 30 bps, depending on consolidated total leverage ratio.

Interest on the term loan is Libor plus a spread of 130 basis points to 190 bps, also depending on consolidated leverage ratio.

If the operating partnership has an investment-grade rating, American Assets can choose to have ratings-based pricing. In that event, for the revolver, the margin above Libor would range from 82.5 bps to 155 bps with a facility fee from 12.5 to 30 bps. Interest on the term loan would be Libor plus 105 bps to 195 bps.

The revolver matures on Jan. 9, 2022 and has two six-month extension options. The term loan matures on Jan. 9, 2019 and has no further extension options.

This credit agreement was originally entered on Jan. 9, 2014.

$150 million term loan amended

Also on Tuesday, the borrowers entered into an amendment to their $150 million term loan agreement dated March 1, 2016.

As a result of the amendment, beginning March 1, borrowings under the $150 million term loan will bear interest at Libor plus 120 bps to 170 bps.

U.S Bank NA is the administrative agent of the $150 million term loan agreement with U.S. Bank, PNC and Wells Fargo as joint bookrunners and lead arrangers and PNC as syndication agent.

Proceeds from each credit agreement are to be used for general corporate purposes.

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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