Summary
On February 16, 2006, AMB Property Corporation (the "Registrant"), through its subsidiary AMB Property, L.P., entered into a material definitive agreement in the form of a third amended and restated revolving credit agreement. This new facility significantly increases the company's unsecured revolving credit capacity to $250 million, replacing a prior $100 million facility. The agreement matures on February 16, 2010, with an option for a one-year extension, and allows for a potential increase in borrowings up to $350 million under certain conditions.
Key Highlights
- 1AMB Property Corporation amended and restated its revolving credit facility, increasing the total commitment to $250 million from $100 million.
- 2The new facility matures on February 16, 2010, with a one-year extension option.
- 3The company has the ability to request a one-time increase in borrowings up to $350 million.
- 4Borrowings will generally be based on LIBOR plus a margin, currently 60 basis points, dependent on AMB Property, L.P.'s senior unsecured long-term debt credit rating.
- 5An annual facility fee of 20 basis points is also tied to the credit rating.
- 6The credit agreement permits borrowings and letters of credit in multiple currencies, including USD, HKD, SGD, CAD, and Euros, subject to specific conditions.
- 7The agreement includes customary affirmative and negative covenants, as well as events of default, with potential acceleration of debt.
Frequently Asked Questions
This 8-K filing announces that AMB Property Corporation (the Registrant) has entered into a third amended and restated revolving credit agreement, significantly increasing its borrowing capacity and updating the terms of its credit facility.
The total committed amount under the revolving credit facility has been increased to $250 million from $100 million. The maturity date has been extended to February 16, 2010, with an extension option, and the company can potentially increase the facility to $350 million.
Borrowings will generally be at a rate of LIBOR plus a margin, which is currently 60 basis points and depends on AMB Property, L.P.'s senior unsecured long-term debt credit rating. There is also an annual facility fee of 20 basis points, also based on the credit rating.
Yes, the agreement allows for borrowings and letters of credit to be denominated in U.S. dollars, Hong Kong dollars, Singapore dollars, Canadian dollars, and Euros, provided certain conditions regarding currency availability, transferability, convertibility, and LIBOR reporting are met, and AMB Property, L.P. maintains an investment grade credit rating from both S&P and Moody’s.