KBS Real Estate amends, extends portfolio loan facility to Dec. 22

By William Gullotti

Buffalo, N.Y., Nov. 21 – KBS Real Estate Investment Trust III, Inc. amended and extended a two-year loan agreement, initially signed Nov. 3, 2021 with Bank of America, NA as administrative agent, on Nov. 17, according to an 8-K filing with the Securities and Exchange Commission.

The initial agreement, scheduled to mature Nov. 3, was for an amount of up to $613.2 million, comprised of $459.9 million of term debt and $153.3 million of revolving debt.

The amended and restated portfolio loan facility is secured by 60 South Sixth, Preston Commons, Sterling Plaza, Towers at Emeryville, Ten Almaden and Town Center.

The company did not meet the conditions necessary to exercise the single 12-month extension option on Nov. 3. It entered into a modification and extension agreement on Nov. 8, with an effective date of Nov. 3, that extended maturity to Nov. 17. The modification and extension agreement removed the 12-month extension option from the agreement.

The latest modification and extension agreement pushed the maturity date to Dec. 22 and also permanently canceled about $6.9 million of unadvanced commitments. There are no additional options available to KBS to further extend the maturity date of the roughly $606.3 million outstanding balance.

According to the filing, KBS continues to have discussions with the remaining facility lenders regarding a potential third modification and extension but gives no assurances that such modifications will be completed.

BofA Securities, Inc., Wells Fargo Securities, LLC and Capital One, NA were the joint lead arrangers and joint bookrunners for the initial facility, with Wells Fargo Bank, NA acting as syndication agent. The remaining lenders for the twice-amended facility are Bank of America, NA, Wells Fargo Bank, NA, U.S. Bank, NA, Capital One, NA, PNC Bank, NA, Regions Bank and Zions Bankcorporation, NA, DBA California Bank & Trust.

The REIT is based in Newport Beach, Calif.

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