KBS Real Estate Investment Trust III, Inc. (KBSR): debt financing — KBS REIT III extends loan maturity, restricts dividends; substantial doubt about going concern

KBS Real Estate Investment Trust III, Inc.

Existing $249.2M facility ($124.6M term + $124.6M revolving all drawn) extended to April 15, 2024 via Third Modification Agreement.
If McEwen Building sells (expected Feb 2024, $1M deposit), maturity may extend to March 1, 2026; interest rate set at SOFR+300bps with $880,900 quarterly principal payments.
Dividends and redemptions restricted except for required REIT distributions; no distributions expected during loan term.
Upon McEwen sale, borrower must prepay greater of $45M or net proceeds; holdbacks up to $17M for tenant improvements and capital expenditures.
Filing notes substantial doubt about KBS REIT III's ability to continue as a going concern due to upcoming maturities, market instability, and leasing challenges.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

KBS Real Estate Investment Trust III, Inc. amended credit facility of $249.2 million with U.S. Bank National Association, Regions Bank, Citizens Bank, City National Bank, Associated Bank at one-month Term SOFR plus 300 basis points maturing April 15, 2024.

Instrument: credit facility
Principal: $249.2 million
Counterparty: U.S. Bank National Association, Regions Bank, Citizens Bank, City National Bank, Associated Bank
Rate: one-month Term SOFR plus 300 basis points
Maturity: April 15, 2024
Event: amendment

Exact text from the filing

that KBS REIT III will complete the sale of the McEwen Building. As of February 9, 2024, the borrowing capacity under the Modified Portfolio Revolving Loan Facility was $249.2 million, of which $124.6 million was term debt and $124.6 million was revolving debt, all of which was outstanding. The Modified Portfolio Revolving Loan Facility had a maturity date of

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KBS Real Estate Investment Trust III, Inc. filing history →

Source: SEC EDGAR

accession 0001482430-24-000011

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