TIER REIT amends credit facility to clarify availability calculation

By Toni Weeks

San Luis Obispo, Calif., Jan. 26 – TIER REIT, Inc. operating partnership Tier Operating Partnership LP amended its credit agreement on Friday with Wells Fargo Bank, NA as agent and lender to clarify the calculation of maximum loan availability, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement provides for a senior secured credit facility with total financing of up to $475 million.

Prior to the occurrence of a collateral release event, outstanding borrowings under the facility are limited to the lesser of (i) 65% of the aggregate as-is appraised value of the pool of properties securing the facility and (ii) a debt service coverage amount with respect to such properties, provided that no more than 30% of availability can be attributed to any one secured pool property.

J.P. Morgan Chase Bank, NA is the syndication agent and lender.

Dallas-based TIER is a real estate investment trust that focuses on commercial office space in strategic markets.

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