American Assets Trust, Inc. Increases Revolving Line of Credit to $400 Million and Extends Maturity Date in Its Third Amended and Restated Credit Agreement

Rhea-AI Summary

American Assets Trust (NYSE:AAT) announced amendments to its credit agreement on January 5, 2022. Key changes include an increase in the revolving line of credit from $350M to $400M and an extension of the maturity date to January 5, 2026. Additionally, the $100M term loan's maturity was extended to January 5, 2027. The agreement reduces pricing spreads and transitions borrowing rates from LIBOR to the Secured Overnight Financing Rate (SOFR). This financial strategy positions the company for improved liquidity and stability amid ongoing market uncertainties.

Positive

• Increased revolving line of credit from $350M to $400M.
• Extended maturity date of revolving credit to January 5, 2026.
• Reduced pricing spreads enhancing potential profitability.
• Transition from LIBOR to SOFR may lead to more favorable borrowing conditions.

Negative

• The ongoing COVID-19 pandemic poses significant risks to financial performance.

SAN DIEGO, Jan. 05, 2022 (GLOBE NEWSWIRE) -- American Assets Trust, Inc. (NYSE:AAT) (the “Company”) announced today that it has amended and restated its existing credit agreement.

The credit agreement was amended and restated to, among other things, (1) increase the revolving line of credit from $350 million to $400 million, (2) extend the maturity date of the restated $400 million revolving line of credit to January 5, 2026 (with two, six-month extension options), (3) extend the maturity date of the $100 million term loan included as part of the credit agreement to January 5, 2027 (with no further extension options), (4) decrease the applicable ratings-based pricing spreads and (5) transition borrowings to the Secured Overnight Financing Rate (SOFR), and away from LIBOR. The revolving line of credit and $100 million term loan are both unsecured.

Additional information regarding the Third Amended and Restated Credit Agreement can be found in the Company’s Form 8-K filed on January 5, 2022 with the Securities and Exchange Commission.

About American Assets Trust, Inc.        

American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust, or REIT, headquartered in San Diego, California. The Company has over 50 years of acquiring, improving, developing and managing premier office, retail and residential properties throughout the United States in some of the nation’s most dynamic, high-barrier-to-entry markets primarily in Southern California, Northern California, Oregon, Washington and Hawaii. The Company's office portfolio comprises approximately 3.9 million square feet, and its retail portfolio comprises approximately 3.1 million rentable square feet. In addition, the Company owns one mixed-use property (including approximately 97,000 rentable square feet of retail space and a 369-room all-suite hotel) and 2,112 multifamily units. In 2011, the Company was formed to succeed to the real estate business of American Assets, Inc., a privately held corporation founded in 1967 and, as such, has significant experience, long-standing relationships and extensive knowledge of its core markets, submarkets and asset classes. For additional information, please visit www.americanassetstrust.com.

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially.  Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. While forward-looking statements reflect the Company's good faith beliefs, assumptions and expectations, they are not guarantees of future performance. Currently, one of the most significant risk factors, is the potential adverse effect of the current COVID-19 pandemic on the financial condition, results of operations, cash flows and performance of the Company, its tenants and guests, the real estate market and the global economy and financial markets. The extent to which COVID-19 impacts the Company, its tenants and guests will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, among others.  For a further discussion of these and other factors that could cause the Company's future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the Company's most recent annual report on Form 10-K, and other risks described in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission.  The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes.

Source: American Assets Trust, Inc.

Investor and Media Contact:

American Assets Trust

Robert F. Barton
Executive Vice President and Chief Financial Officer
858-350-2607

FAQ

What changes were made to American Assets Trust's credit agreement on January 5, 2022?

American Assets Trust increased its revolving line of credit to $400M, extended maturity dates, reduced pricing spreads, and transitioned to SOFR for borrowings.

How long is the new maturity for the revolving credit line of American Assets Trust?

The new maturity date for the revolving credit line is January 5, 2026.

What is the significance of transitioning to SOFR for American Assets Trust?

Transitioning to SOFR from LIBOR may provide more favorable borrowing conditions and reflects market changes.

What is the impact of COVID-19 on American Assets Trust's financial outlook?

The COVID-19 pandemic remains a significant risk factor that could adversely affect the company's financial conditions and operations.