Hudson Pacific Properties announced the amendment and extension of its unsecured revolving credit facility, which was previously set to mature at year-end 2026. This action enhances the company's financial flexibility.
The amendment initially increases permitted borrowings to $795 million, up from $775 million, with a maturity date at year-end 2026. Subsequently, the company will have access to $462 million of permitted borrowings maturing at year-end 2029, including two six-month extension options.
The interest rate remains at SOFR plus 115 to 160 basis points, with an annual fee of 15 to 30 basis points. Certain covenants were modified, including an increase in the minimum adjusted EBITDA to fixed charges ratio from 1.4x to 1.5x, and a reduction in the minimum unencumbered net operating income to unsecured interest expense ratio from 2.00 to 1.75 until the end of 2026.
A new minimum liquidity covenant of $125 million of unrestricted cash, cash equivalents, and unused credit facility commitments was added, applicable if aggregate borrowings exceed $600 million. This extension secures ample capital and enhances the company's maturity ladder.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.