KBS REIT III Reports New Material Agreement & Financial Obligation

TL;DR

**KBS Real Estate Investment Trust III, Inc. just reported a new material agreement and financial obligation on Feb 9, but the details are missing from this filing.**

AI Summary

KBS Real Estate Investment Trust III, Inc. filed an 8-K on February 15, 2024, reporting that on February 9, 2024, it entered into a material definitive agreement and created a direct financial obligation. The specific terms, parties involved, and dollar amounts of these events are not detailed in this filing excerpt. This indicates a significant corporate action without providing the underlying financial or operational specifics.

Why It Matters

This filing signals a significant change in KBS Real Estate Investment Trust III, Inc.'s financial or operational structure, potentially impacting its future liabilities and strategic direction. Without specific details, the full implications for investors remain unclear.

Risk Assessment

Risk Level: medium — The filing indicates a material definitive agreement and a new financial obligation, which inherently carries risk, but the specific terms and potential impact are not disclosed in this excerpt.

Key Players & Entities

• KBS Real Estate Investment Trust III, Inc. (company) — Registrant

FAQ

Key Financial Figures

• $1.0 million — has funded a non-refundable deposit of $1.0 million related to this sale and while we fully
• $249.2 m — d Portfolio Revolving Loan Facility was $249.2 million, of which $124.6 million was term
• $124.6 million — n Facility was $249.2 million, of which $124.6 million was term debt and $124.6 million was re
• $880,900 — payments of principal in the amount of $880,900, (iii) convert the revolving debt into
• $45.0 million — t an amount equal to the greater of (a) $45.0 million or (b) the net sales proceeds generated
• $10.0 million — ures related to the Properties equal to $10.0 million and (ii) a holdback for the payment of,
• $7.0 million — in an amount equal to the lesser of (a) $7.0 million and (b) an amount equal to the Required
• $40.0 million — al to the Required McEwen Payment minus $40.0 million. Disbursements of the holdback amounts

Filing Documents

• kbsriii-20240209.htm (8-K) — 37KB
• 0001482430-24-000011.txt ( ) — 157KB
• kbsriii-20240209.xsd (EX-101.SCH) — 2KB
• kbsriii-20240209_lab.xml (EX-101.LAB) — 22KB
• kbsriii-20240209_pre.xml (EX-101.PRE) — 11KB
• kbsriii-20240209_htm.xml (XML) — 3KB

01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT The information in this Report set forth under Item 2.03 regarding the Modified Portfolio Revolving Loan Facility (defined below) is incorporated herein by reference. ITEM 2.03 CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT Modified Portfolio Revolving Loan Facility On October 17, 2018, certain of KBS Real Estate Investment Trust III, Inc.'s ("KBS REIT III") indirect wholly owned subsidiaries (the "Borrowers") entered into a loan facility (as subsequently modified and amended, the "Modified Portfolio Revolving Loan Facility") with U.S. Bank National Association, as administrative agent (the "Agent"). The current lenders under the Modified Portfolio Revolving Loan Facility are U.S. Bank National Association, Regions Bank, Citizens Bank, City National Bank and Associated Bank, National Association (the "Lenders"). The Modified Portfolio Revolving Loan Facility is secured by 515 Congress, the McEwen Building, Gateway Tech Center and 201 17th Street (the "Properties"). As of February 9, 2024, the McEwen Building was under contract for sale and the closing is expected to occur in February 2024. The buyer has funded a non-refundable deposit of $1.0 million related to this sale and while we fully anticipate the sale to close in February, there can be no certainty that KBS REIT III will complete the sale of the McEwen Building. As of February 9, 2024, the borrowing capacity under the Modified Portfolio Revolving Loan Facility was $249.2 million, of which $124.6 million was term debt and $124.6 million was revolving debt, all of which was outstanding. The Modified Portfolio Revolving Loan Facility had a maturity date of March 1, 2024, with one 12-month extension option, subject to certain terms, conditions and fees as described in the loan documents. On February 9, 2024, KBS REIT III, through the Borrowers, entered into an additional advance and thi

Forward-Looking Statements

Forward-Looking Statements Certain statements included in this Current Report on Form 8-K are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of KBS REIT III and members of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should" or similar expressions. These include statements about KBS REIT III's plans, strategies and prospects, including its ability to comply with any terms, conditions, obligations or covenants contained in any agreements related to debt obligations. These statements are subject to known and unknown risks and uncertainties. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those contemplated by such forward-looking statements. Further, forward-looking statements speak only as of the date they are made, and KBS REIT III undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law. Moreover, you should interpret many of the risks identified in this report, as well as the risks set forth below, as being heightened as a result of the continued disruptions in the financial markets impacting the U.S. commercial real estate industry, especially as it pertains to commercial office buildings. All forward-looking statements should be read in light of the risks identified in Part I, Item 1A of KBS REIT III's Annual Report on Form 10-K for the year ended December 31, 2022 and in Part II, Item 1A of KBS REIT III's Quarterly Reports on Form 10-Q, each as filed with the Securities and Exchange Commission. As a result of KBS REIT III's upcoming loan maturities, the challenging c

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. KBS REAL ESTATE INVESTMENT TRUST III, INC. Dated: February 15, 2024 BY: /s/ Jeffrey K. Waldvogel Jeffrey K. Waldvogel Chief Financial Officer, Treasurer and Secretary

View Full Filing

View this 8-K filing on SEC EDGAR