The operating partnership, JBG SMITH Properties, of JBG SMITH, an owner, operator and developer of mixed-use properties in the Washington, DC market, amended and extended its revolving credit facility and tranche A-2 term loan.
The recast extended the maturity of the revolving credit facility from June 29, 2027 to Aug. 27, 2030, with two six-month extension options, which may extend the maturity to Aug. 27, 2031. The amended facility provides for aggregate commitments of $690 million. The applicable interest rate remains SOFR plus 1.50%, based on the company’s current leverage level, while the 0.10% credit spread adjustment was removed. The revolving credit facility includes an accordion feature that allows for future increases under the revolving credit facility or additional term loans up to $560.0 million in the aggregate, subject to customary conditions.
The recast also increased the $400 million tranche A-2 term loan to $415 million and extended the maturity of $243.9 million of the term loan to Aug. 25, 2028, with three 12-month extension options, which may extend the maturity to Aug. 25, 2031. The remaining $171.1 million of term loan will mature on Jan. 13, 2028. At that time, the interest rate on the extended portion of the loan will increase by 0.25% to SOFR plus 1.65%, based on the company’s current leverage level, and the 0.10% credit spread adjustment will be removed, a net increase of 0.15%.
“The recast extends maturities and further strengthens our balance sheet and liquidity position,” Moina Banerjee, co-president and chief financial officer of JBG SMITH, said. “We greatly appreciate the continued support of so many leading banks and financial institutions.”
The revolving credit facility was syndicated to a group of banks led by BofA Securities and Wells Fargo Securities, which acted as joint bookrunners. Truist Bank, M&T Bank, Morgan Stanley and Capital One served as joint lead arrangers. JPMorgan Chase Bank and United Bank served as documentation agents. Atlantic Union Bank is also included in the syndicate.
The tranche A-2 term loan was syndicated to a group of banks led by Wells Fargo Securities and BofA Securities, which acted as joint bookrunners. Capital One and TD Securities served as joint lead arrangers. Truist Bank and United Bank served as documentation agents. Atlantic Union Bank, Morgan Stanley and M&T Bank were also included in the syndicate.
