CIM Commercial Trust Corporation Enters into First Amendment to Credit Agreement
Jan 16 15
On January 14, 2014, CIM Commercial Trust Corporation, the Borrower's existing Lenders entered into an amendment to the Borrower's Credit Agreement, dated as of September 30, 2014, among the Borrower, the Lenders party thereto and the Administrative Agent. The effect of the First Amendment was to clarify the meaning of a negative covenant and eliminate the tangible net worth covenant.
CIM Commercial Trust Corporation Announces Quarterly Dividend, Payable on December 29, 2014
Dec 9 14
CIM Commercial Trust Corporation announced that its Board of Directors has declared a quarterly cash dividend of $0.21875 per common share. The dividend will be paid on December 29, 2014 to shareholders of record as of December 22, 2014.
CIM Commercial Trust Corporation Enters Credit Agreement with Bank of America, N.A
Oct 1 14
CIM Commercial Trust Corporation entered into a credit agreement with Bank of America, N.A., as administrative agent, JPMorgan Chase Bank, N.A., as Syndication Agent, the lenders from time to time party thereto in order to refinance certain indebtedness described below in Item 1.02 and for general corporate purposes. Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P. Morgan Securities LLC served as Joint Lead Arrangers and Joint Bookrunners. All amounts borrowed under the credit agreement are guaranteed by certain wholly-owned subsidiaries of the Borrower. The credit agreement consists of a $450,000,000 unsecured revolving credit facility a $325,000,000 unsecured term loan facility and a $75,000,000 unsecured delayed draw term loan facility. The Facilities have an initial maturity date of September 30, 2016, each of which may be extended at the option of the Borrower for additional one year periods, subject to customary closing conditions, to September 30, 2017 and September 30, 2018 pursuant to the terms of the credit agreement (the Maturity Date). Borrowings under the credit agreement are required to be repaid on the maturity date. Borrowings under the Facilities bear interest at the applicable margin plus the applicable base rate or Eurodollar rate. The applicable margins, as of the closing date, are based on the company maximum leverage ratio, calculated as a ratio of total consolidated indebtedness to total asset value. Based on the company current maximum leverage ratio, the applicable margins are as follows: for a revolving loan under the revolving facility, 1.20% for a Eurodollar loan or 0.20% for a base rate loan and for a term loan or a delayed draw term loan under the term facility or the delayed draw term facility, respectively, 1.15% for a Eurodollar loan or 0.15% for a base rate loan. Upon the company obtaining an investment grade credit rating established by certain debt rating agencies for the company’s long term, senior, unsecured non-credit enhanced debt, the applicable margin will be based on the company’s then-current febt ratings. The company is subject to certain financial maintenance covenants under the credit agreement, including a maximum leverage ratio of 60%, as of any date, a maximum secured leverage ratio of 40%, as of any date, a maximum unencumbered leverage ratio of 60%, as of any date, a maximum secured recourse leverage ratio of 10%, as of any date, a minimum fixed charge coverage ratio of 1.50:1.00, as of the last day of any fiscal quarter, a minimum unencumbered interest coverage ratio of 1.75:1.00, as of the last day of any fiscal quarter, and a minimum tangible net worth of $1,638,428,000 plus 75% of all cash or other assets received by the company as a result of the sale of equity interests of the company after the closing date, as well as certain other customary covenants. The credit agreement also contains customary events of default provisions, including failure to pay indebtedness, breaches of covenants and bankruptcy or other insolvency events, which could result in the acceleration of all amounts and cancellation of all commitments outstanding under the credit agreement, as well as customary representations and warranties. The foregoing description of the credit amendment does not purport to be complete and is qualified in its entirety by reference to the credit agreement.