Colony CapitalInc. operating company Colony Capital Operating Co. LLC on March 31entered into an amended and restated credit agreement for a revolving credit facilityin the aggregate principal amount of up to $850.0 million.
According to a Form 8-K filed April 5, the agreement includesan option to increase the maximum available principal amount to up to $1.275 billion,subject to agreement by one or more new or existing lenders and satisfaction ofother customary conditions.
The proceeds of the revolving loans and the letters of creditwill be used to finance the investment activities, working capital needs and generalcorporate purposes of Colony Capital Operating and its subsidiaries.
The agreement was entered into with several lenders, and JPMorganChase Bank NA as administrative agent, and replaces the previous credit agreement.
Advances under the agreement accrue interest at a per-annum rateequal to, at the borrower's election, either a LIBOR rate plus a margin of 2.25%,or a base rate determined according to a prime rate or federal funds rate plus amargin of 1.25%.
The maximum amount available for borrowing at any time underthe agreement is limited to a borrowing base valuation of certain investment assets,with the valuation generally determined according to a percentage of adjusted netbook value or a multiple of base management fee EBITDA. As of March 31, the borrowingbase valuation is sufficient to permit borrowings of up to the entire $850.0 millioncommitment. The ability to borrow new amounts under the agreement terminates March31, 2020, with the option to extend the termination date, at the borrower's election,for two additional terms of six months each, resulting in a latest termination dateof March 31, 2021.
Merrill Lynch Pierce Fenner & Smith Inc. and JPMorgan ChaseBank NA acted as joint lead arrangers and joint book runners, and Bank of AmericaNA acted as syndication agent with respect to the credit agreement.