Company: KBSR
Filing Date: 2025-02-12
Form Type: 8-K
Source: 0001482430-25-000006
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Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-02-12
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”). The Amended and Restated Portfolio Loan Facility is secured by 60 South Sixth, Sterling Plaza, Towers at Emeryville, Ten Almaden and Town Center (each a “ Property,” and together, the “ Properties”).

On February 6, 2025, KBS REIT III, through the Portfolio Loan Borrowers and KBS REIT Properties III, LLC (“ REIT Properties III”), entered into the eighth loan modification agreement with the Portfolio Loan Agent and the Portfolio Loan Lenders (the “ Eighth Modification Agreement”). Pursuant to the terms of the Eighth Modification Agreement, the maturity date of the facility was extended to January 22, 2027, with two additional 12-month extension options, subject to the terms and conditions in the loan documents. Pursuant to the Eighth Modification Agreement, the Amended and Restated Portfolio Loan Facility bears interest at one-month Term SOFR plus 300 basis points.

Prior to closing the Eighth Modification Agreement, the aggregate outstanding principal balance of the Amended and Restated Portfolio Loan Facility was approximately $465.9 million (the “ Principal Debt”). The Eighth Modification Agreement provides for $15.0 million of new funding (“ Additional Loan Proceeds”; the Additional Loan Proceeds together with the Principal Debt (the “ Maximum Facility Amount”)) that may be advanced in accordance with,