Company: KBSR
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001482430-25-000021
Chunk: 84

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 15
Chunk 84
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  Through these modification agreements, the Credit Facility maturity date was extended to the earliest to occur of (i) September 30, 2027 and (ii) the date on which the aggregate commitment under the facility is reduced to zero or is otherwise terminated.The Credit Facility Second Modification Agreement permanently reduced the aggregate commitment under the Credit Facility to $62.9 million, which was fully drawn as of December 31, 2024.  The Credit Facility Second Modification Agreement also eliminated the revolving portion of the facility and converted the facility to a non-revolving term loan, such that no amounts repaid may be subsequently reborrowed.  Pursuant to the Credit Facility Second Modification Agreement, the Credit Facility Third Modification Agreement, the Credit Facility Fourth Modification Agreement and the Credit Facility Fifth Modification Agreement, the Credit Facility Agent and Credit Facility Lenders waived the requirement for the Credit Facility Borrower to comply with the maximum leverage ratio, minimum consolidated net worth requirement, minimum fixed charges coverage ratio and minimum liquidity requirement from December 31, 2023 through the then current maturity date.  The Credit Facility Sixth Modification Agreement requires the Credit Facility Borrower to satisfy the EBITDA to interest charges ratio covenant, commencing with the December 31, 2024 calendar quarter reporting period.  Pursuant to the Credit Facility Third Modification Agreement, effective July 30, 2024, the Credit Facility bears interest at one-month Term SOFR plus 300 basis points.The Credit Facility Third Modification Agreement also included, among other requirements, a requirement for the Company to raise not less than $100,000,000 in new equity, debt or a combination of both on or prior to October 15, 2024.  In October 2024, the Credit Facility Agent and Credit Facility Lenders waived certain requirements initially included in the Credit Facility Third Modification Agreement, including the requirement for the Company to raise not less than $100,000,000 in new equity, debt or a combination of both, and requires the Company to satisfy other conditions.

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Table of ContentsKBS REAL ESTATE INVESTMENT TRUST III, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)December 31, 20248.      NOTES PAYABLE (CONTINUED)

The Credit Facility Sixth Modification Agreement includes a requirement to meet each of the following milestones:(a)  on or prior to December 31, 2025, the Credit Facility Borrower will cause the sale of one of the Company’s properties