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PS Business Parks, Inc. Announces Amendment and Restatement of Unsecured Revolving Credit Facility

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PS Business Parks, Inc. (NYSE:PSB) announced a significant expansion of its unsecured revolving credit facility, increasing the amount from $250 million to $400 million. The maturity date has been extended to August 24, 2025, with options for further extensions. The facility's interest rate is set at LIBOR plus 0.70%, with a potential to improve pricing based on sustainability targets. This credit agreement enhances the company's financial flexibility and positions it for future growth opportunities.

Positive
  • Increased credit facility from $250 million to $400 million.
  • Extended maturity date to August 24, 2025, with extension options.
  • Potential reduction in interest rate through sustainability targets.
  • Accordion feature allows for an additional $300 million in commitments.
Negative
  • None.

GLENDALE, Calif.--(BUSINESS WIRE)-- PS Business Parks, Inc. (NYSE:PSB) today announced that its operating partnership, PS Business Parks, L.P., entered into a Fourth Amended and Restated Credit Agreement (the “Credit Agreement”). The amendment and restatement, among other things, increases the aggregate principal amount of the unsecured revolving credit facility (“Credit Facility”) from $250 million to $400 million, and extends the maturity date to August 24, 2025, with two six-month extension options or one twelve-month extension option. The Credit Facility now bears interest at LIBOR plus 0.70% and includes a facility fee of 10 basis points calculated on the aggregate principal commitment. The interest rate margin and facility fee may increase in the future based on the ratio of the Company’s total consolidated indebtedness to the Company’s consolidated gross asset value, as determined in accordance with the Credit Agreement. The Credit Facility also features a sustainability-linked pricing component whereby the pricing can improve by 0.01% if PSB meets certain sustainability performance targets, and an accordion feature whereby the Company has an option to increase commitments under the Credit Facility up to an additional $300 million, subject to obtaining additional commitments from lenders and the satisfaction of certain customary conditions.

Wells Fargo Securities, LLC served as a Lead Arranger and Bookrunner, with BofA Securities, Inc., and JP Morgan Chase Bank, N.A. as Joint Lead Arrangers. Wells Fargo Bank, N.A. served as the Administrative Agent with Bank of America, N.A. as the Syndication Agent and Sustainability Agent.

Company Information

PS Business Parks, Inc., a S&P MidCap 400 company, is a REIT that acquires, develops, owns, and operates commercial properties, predominantly multi-tenant industrial, industrial-flex, and low-rise suburban office. Located primarily in major costal markets, PS Business Parks’ 96 properties serve approximately 5,000 tenants, in 27 million square feet as of August 24, 2021. The portfolio also includes 800 residential units (inclusive of units in-process).

Forward-Looking Statements

When used within this press release, the words “may,” “believes,” “anticipates,” “plans,” “expects,” “seeks,” “estimates,” “intends,” and similar expressions are intended to identify “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties, and other factors, which may cause the actual results and performance of the Company to be materially different from those expressed or implied in the forward-looking statements. Such factors include the duration and severity of the COVID-19 pandemic and its impact on our business and our customers; the impact of competition from new and existing commercial facilities which could impact rents and occupancy levels at the Company’s facilities; the Company’s ability to evaluate, finance, and integrate acquired and developed properties into the Company’s existing operations; the Company’s ability to effectively compete in the markets that it does business in; the impact of the regulatory environment as well as national, state, and local laws and regulations including, without limitation, those governing REITs; security breaches, including ransomware, or a failure of the Company’s networks, systems or technology, which could adversely impact the Company’s operations or its business, customer and employee relationships or result in fraudulent payments; the impact of general economic and business conditions, including as a result of the economic fallout of the COVID-19 pandemic; rental rates and occupancy levels at the Company’s facilities; and changes in these conditions as a result of the COVID-19 pandemic, the availability of permanent capital at attractive rates, the outlook and actions of rating agencies and risks detailed from time to time in the Company’s SEC reports, including quarterly reports on Form 10-Q, reports on Form 8-K, and annual reports on Form 10‑K.

Jeff Hedges

(818) 244-8080, Ext. 1649

Source: PS Business Parks, Inc.

FAQ

What is the significance of PS Business Parks' new credit agreement?

PS Business Parks increased its unsecured revolving credit facility from $250 million to $400 million, enhancing financial flexibility.

What are the terms of the new credit facility for PS Business Parks?

The credit facility has a maturity date of August 24, 2025, and bears interest at LIBOR plus 0.70%.

How can PS Business Parks benefit from sustainability targets in its credit agreement?

Achieving certain sustainability performance targets can reduce the interest margin on the credit facility.

What options does PS Business Parks have regarding the maturity of its credit facility?

PS Business Parks can extend the maturity date through two six-month or one twelve-month extension options.

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REIT—Diversified
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United States
Glendale