KBS REIT III Enters Material Definitive Agreement

TL;DR

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

AI Summary

On December 18, 2024, KBS Real Estate Investment Trust III, Inc. entered into a material definitive agreement. This agreement involves the creation of a direct financial obligation or an obligation under an off-balance sheet arrangement for the registrant. Specific details regarding the nature of the agreement and the financial obligations were not disclosed in this filing.

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 structure and future operations.

Risk Assessment

Risk Level: medium — The filing indicates a material definitive agreement and financial obligations, but lacks specific details, creating uncertainty about the associated risks.

Key Players & Entities

• KBS Real Estate Investment Trust III, Inc. (company) — Registrant
• December 18, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $306.0 million — balance of the Accenture Tower Loan was $306.0 million. The Fourth Modification Agreement conv
• $322.0 m — e Accenture Tower Loan was increased to $322.0 million, consisting of the outstanding pr
• $16.0 million — principal balance of $306.0 million and $16.0 million of new funding ("New Availability") tha
• $5.0 million — I where the demand made is greater than $5.0 million and the required Accenture Tower Lender
• $995,600 — ower Lenders a loan modification fee of $995,600, paid the Agent an administrative fee o
• $100,000 — paid the Agent an administrative fee of $100,000 and paid certain legal and other costs
• $650,000 — er Lenders an exit fee in the amount of $650,000, which is due on the earliest to occur

Filing Documents

• kbsriii-20241218.htm (8-K) — 41KB
• 0001482430-24-000077.txt ( ) — 160KB
• kbsriii-20241218.xsd (EX-101.SCH) — 2KB
• kbsriii-20241218_lab.xml (EX-101.LAB) — 20KB
• kbsriii-20241218_pre.xml (EX-101.PRE) — 11KB
• kbsriii-20241218_htm.xml (XML) — 3KB

01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT Accenture Tower 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 Loan"). The current lenders under the Accenture Tower 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 Loan is secured by Accenture Tower (the "Property"). On December 18, 2024, KBS REIT III, through the Accenture Tower Borrower, entered into a third extension agreement with the Accenture Tower Lenders (the "Third Extension Agreement") to extend the maturity date of the Accenture Tower Loan to December 20, 2024. Under the Third Extension Agreement, the Agent and the Accenture Tower Lenders waived the requirement for KBS REIT Properties III, LLC ("REIT Properties III"), KBS REIT III's indirect wholly owned subsidiary, as guarantor, to satisfy the net worth covenant, the leverage ratio covenant and the EBITDA to fixed charges ratio covenant through the extended maturity date of December 20, 2024. On December 20, 2024, KBS REIT III, through the Accenture Tower Borrower, entered into a fourth modification agreement with the Accenture Tower Lenders (the "Fourth Modification Agreement"). Pursuant to the Fourth Modification Agreement, the Accenture Tower Lenders agreed to extend the maturity date of the Accenture Tower Loan to November 2, 2026, with an additional 12-month extension option available pursuant to the loan agreement, subject to cert

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, in Part II, Item 1A of KBS REIT III's Quarterly Reports on Form 10-Q and in KBS REIT III's Current Report on Form 8-K filed with the Securities and Exchange Commission on December 20, 2024. As a result of

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 23, 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