PS Business Parks amends and restates increased $400 million revolver

By William Gullotti

Buffalo, N.Y., Aug. 24 – PS Business Parks, Inc. announced that its operating partner, PS Business Parks, LP, entered into a fourth amended and restated credit agreement on Tuesday, according to a press release and an 8-K filing with the Securities and Exchange Commission.

The amendment increases the company’s revolving credit facility to $400 million from $250 million and extends the maturity date to Aug. 24, 2025. The maturity date extension comes with two six-month extension options or a single 12-month extension. If extended, there will be an extension fee of 0.0625% of the amount outstanding for each six-month extension of 0.125% of the amount outstanding for a twelve-month extension.

The new revolver bears interest at Libor plus 70 basis points, including a facility fee of 10 bps calculated on the aggregate principal commitment. The pricing grid ranges between Libor plus 70 bps and 135 bps. The facility fee ranges between 10 bps and 25 bps. The grid is based on the company’s total consolidated debt to the company’s consolidated gross asset value.

The agreement also features a sustainability-linked pricing component whereby the pricing can improve pricing by 0.01% if the company meets certain sustainability performance targets as well as an accordion feature whereby the company has an option to increase commitments up to an additional $300 million, subject to additional conditions and commitments.

At closing, there were no outstanding borrowings under the agreement.

Borrowings can be used for property development costs, capital expenditures, repayment of debt, general working capital needs and other general corporate purposes.

BofA Securities, Inc., JP Morgan Chase Bank, NA and Wells Fargo Securities LLC served as bookrunners with Wells Fargo Securities LLC as lead arranger. Wells Fargo Bank, NA is the administrative agent, and Bank of America, NA is both syndication agent and sustainability agent.

PS Business Parks is a Glendale, Calif.-based real estate investment trust.

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