Company: KBSR
Filing Date: 2025-01-29
Form Type: 8-K
Source: 0001482430-25-000003
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Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-01-29
Form: 8-K
Item: Item 1.01
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ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

Amended and Restated Portfolio Loan Facility

On November 3, 2021, certain of KBS Real Estate Investment Trust III, Inc.’s (“ KBS REIT III”) indirect wholly owned subsidiaries (the “ Portfolio Loan Borrowers”), entered into a loan agreement with Bank of America, N. A., as administrative agent (the “ Portfolio Loan Agent”); BofA Securities, Inc., Wells Fargo Securities, LLC and Capital One, National Association as joint lead arrangers and joint book runners; Wells Fargo Bank, N. A., as syndication agent; and each of the financial institutions signatory thereto as lenders (as subsequently modified and amended, the “ Amended and Restated Portfolio Loan Facility”). The current lenders under the Amended and Restated Portfolio Loan Facility are Bank of America, N. A.; Wells Fargo Bank, National Association; U. S. Bank, National Association; Capital One, National Association; PNC Bank, National Association; Regions Bank; and Zions Bankcorporation, N. A., DBA California Bank & Trust (together, the “ Portfolio Loan Lenders”).

Effective as of January 23, 2025, KBS REIT III, through the Portfolio Loan Borrowers, entered into a short-term extension agreement with the Portfolio Loan Agent and the Portfolio Loan Lenders (the “ January Extension Agreement”). (1) Pursuant to the terms of the January Extension Agreement, the maturity date of the facility was extended to February 6, 2025, and the Portfolio Loan Lenders agreed to advance the Portfolio Loan Borrowers $4.97 million for the payment of real property taxes related to two properties, subject to the conditions of the January Extension Agreement.

As of January 27, 2025, the aggregate outstanding principal balance of the Amended and Restated Portfolio Loan Facility was approximately $465.9 million, inclusive of the advance for real estate taxes discussed above. The Amended and Restated Portfolio Loan Facility is secured by 60 South Sixth, Sterling Plaza, Towers at Emeryville, Ten Almaden and Town Center (the “ Properties”).

Under the January Extension Agreement, the Portfolio Loan Agent and the Portfolio Loan Lenders waived the requirement for the Properties to satisfy the minimum required ongoing debt service coverage ratio through the maturity date under the loan documents and waived the requirement for KBS REIT Properties III LLC, as guarantor, to satisfy a net worth covenant through