KBS Real Estate ate Investment Trust III (KBSR) has released an update.
KBS Real Estate Investment Trust III has negotiated an extension of its Modified Portfolio Revolving Loan Facility to April 15, 2024, with the potential for a further extension to March 2026 if the McEwen Building, which is currently under a sales contract, is released as collateral. The Facility’s terms have been adjusted, including converting revolving debt to non-revolving, altering the interest rate, and establishing conditions for cash management and holdbacks for property-related expenses. Additionally, KBS REIT III’s capacity to pay dividends or redeem shares is restricted unless required to maintain its REIT status. The sale of the McEwen Building will lead to a significant loan paydown, with re-borrowing provisions and financial covenants revisited to accommodate these changes.
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