KBS REIT III Enters Material Agreement, Incurs Financial Obligation

TL;DR

KBS REIT III just signed a big deal and took on debt. Details TBD.

AI Summary

On July 15, 2024, KBS Real Estate Investment Trust III, Inc. entered into a material definitive agreement and created a direct financial obligation. The filing does not specify the counterparty or the exact nature of the agreement or obligation, but it is a significant event for the company.

Why It Matters

This filing indicates a significant financial commitment or transaction by KBS Real Estate Investment Trust III, Inc., which could impact its financial standing and future operations.

Risk Assessment

Risk Level: medium — The filing indicates a material definitive agreement and a direct financial obligation, suggesting a significant transaction with potential financial implications that are not yet fully disclosed.

Key Players & Entities

• KBS Real Estate Investment Trust III, Inc. (company) — Registrant
• July 15, 2024 (date) — Date of earliest event reported
• Maryland (jurisdiction) — State of incorporation
• Newport Beach, California (location) — Principal executive offices
• 949-417-6500 (phone_number) — Registrant's telephone number

FAQ

Key Financial Figures

• $601.3 million — rtfolio Loan Facility was approximately $601.3 million as of July 15, 2024. Under the Fifth E
• $100,000,000 — ion of both, in an amount not less than $100,000,000 to KBS REIT III; (b) On or prior to Se
• $5.0 million — de or amount guaranteed is greater than $5.0 million. Additionally, the Fifth Extension Agre
• $0.6 m — s a non-refundable fee in the amount of $0.6 million, (b) to deposit an additional $5.
• $1.0 million — ayment of the exit fee in the amount of $1.0 million due to the Portfolio Loan Lenders to th

Filing Documents

• kbsriii-20240715.htm (8-K) — 35KB
• 0001482430-24-000039.txt ( ) — 153KB
• kbsriii-20240715.xsd (EX-101.SCH) — 2KB
• kbsriii-20240715_lab.xml (EX-101.LAB) — 20KB
• kbsriii-20240715_pre.xml (EX-101.PRE) — 11KB
• kbsriii-20240715_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 Amended and Restated Portfolio 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 Amended and Restated Portfolio Loan Facility On November 3, 2021, certain of KBS Real Estate Investment Trust III, Inc.'s ("KBS REIT III") indirect wholly owned subsidiaries (the "Amended and Restated Portfolio Loan Facility Borrowers"), entered into a loan agreement with Bank of America, N.A., as administrative agent (the "Agent"); BofA Securities, Inc., Wells Fargo Securities, LLC and Capital One, National Association as joint lead arrangers and joint book runners; Wells Fargo Bank, N.A., as syndication agent; and each of the financial institutions signatory thereto as lenders (as subsequently modified and amended, the "Amended and Restated Portfolio Loan Facility"). The current lenders under the Amended and Restated Portfolio Loan Facility are Bank of America, N.A.; Wells Fargo Bank, National Association; U.S. Bank, National Association; Capital One, National Association; PNC Bank, National Association; Regions Bank; and Zions Bankcorporation, N.A., DBA California Bank & Trust (together, the "Portfolio Loan Lenders"). The Amended and Restated Portfolio Loan Facility is secured by 60 South Sixth, Preston Commons, Sterling Plaza, Towers at Emeryville, Ten Almaden and Town Center (the "Properties"). On February 6, 2024, KBS REIT III, through the Amended and Restated Portfolio Loan Facility Borrowers, entered into a fourth loan modification and extension agreement with the Agent and the Portfolio Loan Lenders (the "Fourth Extension Agreement"). See KBS REIT III's Current Report on Form 8-K filed with the Securities and Exchange Commission on February 12, 2024 for a description of the material terms of the Fourth Extension

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, including but not limited to its ability to raise capital as required by the Fifth Extension Agreement. 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, 2023 and in Part II, Item 1A of KBS REIT III's Quarterly Reports on Form 10-Q, each as filed with the Securi

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: July 18, 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