Its trustee has also obtained a revolving credit facility with a principal amount of US$25 million
THE trustee of Keppel Pacific Oak US Reit (Kore) secured an option to extend a 12-month unsecured term loan facility of US$115 million, its manager said on Monday (Jul 22).
The trustee also obtained a revolving credit facility with a principal amount of US$25 million, with conditions tied to mandatory prepayment events.
Under the terms of the facility agreement, the real estate investment trust (Reit) must pay all outstanding loans under the loan facility immediately should the manager, or any replacement or substitute, step down from its role.
Another mandatory prepayment event for the revolving credit facility is if sponsor Keppel and either sponsor Kore Pacific Advisors or US asset manager Pacific Oak Capital Advisors fail to collectively, directly or indirectly own all shares of Kore’s manager Keppel Pacific Oak US Reit Management.
If these events occur, the trustee will need to prepay the outstanding loans, which would cause a cross-default under the borrowings of Kore and its subsidiaries – estimated to be around US$695 million, excluding interest and fees.
Kore units closed 2.9 per cent or US$0.005 lower at US$0.169 on Friday.
