debt
confidence high
sentiment negative
materiality 0.75
Hudson Pacific cuts revolving credit facility by $125M to $775M; eases covenants, sets rate floor
Hudson Pacific Properties, Inc.
- Revolving commitments permanently reduced by $125M, to $775M aggregate.
- Minimum adjusted EBITDA-to-fixed-charges covenant lowered from 1.50x to 1.40x.
- Minimum unencumbered NOI-to-unsecured-interest-expense reduced from 2.00x to 1.75x.
- Applicable margin and facility fee set at no lower than Level IV, effectively raising borrowing cost.
- Proceeds from revolving facility cannot be used to repurchase or redeem common equity.