Creative Media details $206.23 million three-year credit facility

By Marisa Wong

Los Angeles, Dec. 20 – Creative Media & Community Trust Corp. (CMCT) disclosed details of its new secured credit facility entered on Dec. 16 in an 8-K filed Tuesday with the Securities and Exchange Commission.

The credit facility consists of a $150 million revolver and a $56.23 million term loan, both maturing Dec. 16, 2025, subject to two one-year extension options.

Borrowings bear interest at term SOFR plus an applicable margin of 250 basis points.

The company is subject to some financial maintenance covenants, including a maximum consolidated leverage ratio of 60%, a minimum consolidated net worth based on 75% of consolidated net worth as of June 30, subject to certain adjustments after the closing date and a minimum fixed-charge coverage ratio of 1.05 to 1.00.

The credit facility replaces the company’s prior 2018 credit facility that was set to mature in October 2023.

Proceeds from the new term loan were used at closing to repay all of the outstanding revolving borrowings under the old credit agreement.

At closing, no amount was drawn under the new revolver.

Wholly owned subsidiaries 9460 Wilshire Blvd (BH) Owner, LP, CIM/11600 Wilshire (Los Angeles), LP, CIM/11620 Wilshire (Los Angeles), LP, 1130 Howard (SF) Owner, LP, CIM Urban REIT Properties IX, LP, CIM/J Street Hotel Sacramento, LP, CIM/J Street Garage Sacramento, LP and Two Kaiser Plaza (Oakland) Owner, LLC are borrowers.

Creative Media and wholly owned indirect subsidiary CIM Urban Partners, LP are the guarantors.

JPMorgan Chase Bank, NA and BofA Securities, Inc. are the joint lead arrangers and joint bookrunners, with JPMorgan as administrative agent.

CMCT is a real estate investment trust that owns, operates and develops multifamily and office assets in emerging communities throughout the United States.

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