Hudson Pacific Properties, Inc. (NYSE:HPP), a unique provider of end-to-end real estate solutions for tech and media tenants, today announced it has amended and extended its existing unsecured revolving credit facility, which was set to mature at year-end 2026 including extension options. The amendment initially increases permitted borrowings to $795 million, compared to $775 million previously, with a year-end 2026 maturity date. Thereafter, the company will have access to $462 million of permitted borrowings maturing year-end 2029 including two six-month extension options.
Both the amendment and extension maintain the current interest rate of SOFR plus 115 to 160 basis points and annual fee of 15 to 30 basis points, while modifying certain covenants including increasing the minimum ratio of adjusted EBITDA to fixed charges from 1.4x to 1.5x, reducing the minimum ratio of unencumbered net operating income to unsecured interest expense from 2.00 to 1.75 until the end of 2026, and adding a minimum liquidity covenant of $125 million of unrestricted cash, cash equivalents and unused credit facility commitments in the event aggregate borrowings under the credit facility exceed $600 million.
Harout Diramerian, Hudson Pacific's CFO, stated, "We are pleased to have amended and extended our credit facility, giving us nearly $800 million of capacity through year-end 2026, and close to half a billion of capacity through year-end 2029, including extension options. With continued strong participation amongst our core banking group, we have once again enhanced our maturity ladder and secured ample capital to achieve our strategic objectives going forward."
The amendment of the company's credit facility was led by Wells Fargo Securities, LLC, BofA Securities, Inc., KeyBanc Capital Markets, Inc., and Royal Bank of Canada as joint lead arrangers; Wells Fargo Securities, LLC, and BofA Securities, Inc. as joint book runners; Wells Fargo Bank, National Association as administrative agent; Bank of America, N.A. as syndication agent; Goldman Sachs Bank USA, Morgan Stanley Senior Funding, Inc., and KeyBank National Association as documentation agents; and U.S. Bank National Association as a lender. The extension was led by Wells Fargo Securities, LLC, BofA Securities, Inc., KeyBanc Capital Markets, Inc., Royal Bank of Canada, Morgan Stanley Senior Funding, Inc., and Goldman Sachs Bank USA in their previously mentioned roles.
About Hudson Pacific Properties
Hudson Pacific Properties (NYSE:HPP) is a real estate investment trust serving dynamic tech and media tenants in global epicenters for these synergistic, converging and secular growth industries. Hudson Pacific's unique and high-barrier tech and media focus leverages a full-service, end-to-end value creation platform forged through deep strategic relationships and niche expertise across identifying, acquiring, transforming and developing properties into world-class amenitized, collaborative and sustainable office and studio space. For more information visit HudsonPacificProperties.com.
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