Stratus Properties Inc. filed SEC Form 8-K: Entry into a Material Definitive Agreement
$STRS
Homebuilding
Real Estate
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 8, 2024
(Exact name of registrant as specified in its charter)
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Item 1.01. Entry into a Material Definitive Agreement.
On October 8, 2024, The Saint June, L.P. (the Partnership), a Texas limited partnership and 34.13% owned subsidiary of Stratus Properties Inc. (Stratus), as borrower, Stratus, as guarantor, and Texas Capital Bank entered into an Amendment to Loan Agreement and related agreements effective as of October 2, 2024 (the Amendments), which amend that certain Loan Agreement dated June 2, 2021 by and between the Partnership, Texas Capital Bank and each of the lenders party thereto, each as previously amended (collectively and as amended, the Loan Agreements). The Loan Agreements provide for a construction loan (as amended, the Loan) to finance a portion of the cost of the development and construction of The Saint June, a 182-unit luxury garden-style multi-family project within the Amarra development in Barton Creek, located in Austin Texas. Construction of The Saint June was completed in fourth-quarter 2023.
The Amendments (i) extend the maturity date of the Loan to October 2, 2025; (ii) increase the aggregate commitment under the Loan by $2.0 million to $32.3 million; (iii) decrease the interest rate applicable margin from 2.85% to 2.35%; and (iv) require payment of an exit fee for prepayments and repayments of the Loan of 1.0% of the principal amount of such amounts repaid, subject to certain exceptions. The Partnership has one remaining option to extend the maturity of the Loan for an additional 12-month period, subject to meeting certain conditions. After closing costs, the Partnership intends to use the remaining portion of the $2.0 million proceeds of the Loan for a combination of operating reserves for the property and partial repayment of operating loans to the Partnership from Stratus and the Class B Limited Partner.
Accordingly, the Loan bears interest at the one-month Term Secured Overnight Financing Rate plus 2.35%, subject to a 3.50% floor. The principal balance of the Loan is payable in monthly installments of principal and interest of approximately $40,000, with the outstanding principal due at maturity. As of closing, the principal amount outstanding on the Loan was $31.8 million.
The foregoing description of the Amendments is not intended to be complete and is qualified in its entirety by reference to the full text of the Amendments, copies of which will be filed by Stratus as exhibits to its next periodic report.
SIGNATURE
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.
Stratus Properties Inc.
| By: | /s/ Erin D. Pickens | |||||||
| Erin D. Pickens | ||||||||
Senior Vice President and Chief Financial Officer (authorized signatory and Principal Financial Officer and Principal Accounting Officer) | ||||||||
Date: October 15, 2024