Hudson Pacific Properties, Inc. (NYSE: HPP) has completed an amendment and extension of its existing unsecured revolving credit facility. The amendment increases permitted borrowings to $795 million, up from $775 million, with a year-end 2026 maturity date. Following this, the company will have access to $462 million of permitted borrowings maturing year-end 2029, including two six-month extension options.
The interest rate on the facility remains at SOFR plus 115 to 160 basis points, and the annual fee at 15 to 30 basis points. However, certain covenants have been modified, including an increase in the minimum ratio of adjusted EBITDA to fixed charges from 1.4x to 1.5x and a reduction in the minimum ratio of unencumbered net operating income to unsecured interest expense from 2.00 to 1.75 until the end of 2026. Additionally, a minimum liquidity covenant of $125 million of unrestricted cash, cash equivalents, and unused credit facility commitments has been added in the event aggregate borrowings under the credit facility exceed $600 million.
Harout Diramerian, Hudson Pacific’s CFO, expressed satisfaction with the amendment and extension, highlighting the nearly $800 million capacity through year-end 2026 and close to half a billion of capacity through year-end 2029, including extension options. He also noted the strong participation among the company's core banking group and the enhanced maturity ladder, providing ample capital to achieve strategic objectives going forward.
Wells Fargo Securities, LLC, BofA Securities, Inc., KeyBanc Capital Markets, Inc., and Royal Bank of Canada served as joint lead arrangers for the amendment of the credit facility, while Wells Fargo Securities, LLC, and BofA Securities, Inc. acted as joint book runners. Wells Fargo Bank, National Association was the administrative agent, and Bank of America, N.A. served as the syndication agent. Goldman Sachs Bank USA, Morgan Stanley Senior Funding, Inc., and KeyBank National Association acted as documentation agents, and U.S. Bank National Association served as a lender.
In the extension, the aforementioned entities played the same roles, 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.
Hudson Pacific Properties, a real estate investment trust, focuses on serving dynamic tech and media tenants in global epicenters for these growth industries. As a result of these announcements, the company's shares have moved -0.35% on the market, and are now trading at a price of $2.87. For more information, read the company's full 8-K submission here.
