The manager of Keppel Pacific Oak US REIT (KORE) has on July 19 secured an option to extend a US$115 million ($154 million) unsecured term loan facility for a period of 12 months from the maturity date.
The REIT’s trustee has also obtained a revolving credit facility in a principal amount of US$25 million, pursuant to a facility agreement dated July 19.
Under the terms and conditions of the facility agreement, the borrower will be required to pay all outstanding loans under the loan facility immediately in the event that the manager, or any ceases to be the manager of KORE or Keppel and its subsidiaries cease to collectively, directly, or indirectly, own all the issued share capital of the manager.
Assuming the occurrence of a mandatory prepayment event and that such occurrence would cause a cross default under other borrowings of KORE and its subsidiaries from time to time, the aggregate level of facilities that may be affected as at July 22 is approximately US$695 million.
Units in KORE closed 0.5 cents lower or 2.87% down on July 19 at 16.9 cents.
