KBS REIT III Enters Material Definitive Agreement

TL;DR

KBS REIT III just signed a big deal, creating new financial obligations.

AI Summary

On December 9, 2024, KBS Real Estate Investment Trust III, Inc. entered into a material definitive agreement. This agreement constitutes a direct financial obligation or an obligation under an off-balance sheet arrangement for the registrant. Further details regarding the specific agreement and its financial implications are not provided in this filing excerpt.

Why It Matters

This filing indicates a significant new financial commitment or arrangement for KBS Real Estate Investment Trust III, Inc., which could impact its financial obligations and future operations.

Risk Assessment

Risk Level: medium — Entering into material definitive agreements can introduce new financial risks and obligations that may not be immediately apparent.

Key Players & Entities

• KBS Real Estate Investment Trust III, Inc. (company) — Registrant
• December 9, 2024 (date) — Date of earliest event reported
• Maryland (jurisdiction) — State of incorporation
• Newport Beach, California (location) — Principal executive offices address

FAQ

Key Financial Figures

• $306.0 m — the Accenture Tower Revolving Loan was $306.0 million, which consisted of $229.5 millio
• $229.5 million — was $306.0 million, which consisted of $229.5 million of term debt and $76.5 million of revol
• $76.5 million — sted of $229.5 million of term debt and $76.5 million of revolving debt. KBS REIT III continu

Filing Documents

• kbsriii-20241209.htm (8-K) — 30KB
• 0001482430-24-000071.txt ( ) — 146KB
• kbsriii-20241209.xsd (EX-101.SCH) — 2KB
• kbsriii-20241209_lab.xml (EX-101.LAB) — 20KB
• kbsriii-20241209_pre.xml (EX-101.PRE) — 11KB
• kbsriii-20241209_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 Accenture Tower Revolving Loan (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 Accenture Tower Revolving Loan On November 2, 2020, KBS Real Estate Investment Trust III, Inc. ("KBS REIT III"), through an indirect wholly owned subsidiary (the "Accenture Tower Borrower"), entered into a loan facility with U.S. Bank, National Association, as administrative agent (the "Agent"), joint lead arranger and co-book runner; Bank of America, N.A., as syndication agent, joint lead arranger and co-book runner; and each of the financial institutions signatory thereto as lenders (as amended and modified, the "Accenture Tower Revolving Loan"). The current lenders under the Accenture Tower Revolving Loan are U.S. Bank, National Association, Bank of America, N.A., Deutsche Pfandbriefbank AG and the National Bank of Kuwait S.A.K.P. Grand Caymans Branch (the "Accenture Tower Lenders"). The Accenture Tower Revolving Loan is secured by Accenture Tower. As previously disclosed, on November 1, 2024, KBS REIT III, through the Accenture Tower Borrower, entered into a third modification agreement with the Accenture Tower Lenders (the "Third Modification Agreement"). Pursuant to the terms of the Third Modification Agreement, the maturity date of the Accenture Tower Revolving Loan was extended to December 10, 2024 and any prior right of the Accenture Tower Borrower to exercise an additional 12-month extension option was removed. On December 9, 2024, KBS REIT III, through the Accenture Tower Borrower, entered into an extension agreement with the Accenture Tower Lenders (the "First Extension Agreement") to extend the maturity date of the Accenture Tower Revolving Loan to December 13, 2024, and on December 12, 2024, KBS REIT III, through the Ac

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, 2023 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: December 13, 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