Hines Global Secures $1.35 Billion Credit Facility
The agreement strengthens Hines Global’s financial position and provides flexibility for future expansion.
March 17, 2025
Hines Global Income Trust has locked in a $1.35 billion credit facility, reinforcing its capital position as it continues to expand its real estate portfolio. The agreement, finalized on March 12, 2025, includes a $650 million revolving credit facility and a $700 million term loan. JPMorgan Chase Bank is serving as the administrative agent, with the potential for the total commitment to increase to $1.75 billion under certain conditions.
Hines Global has already drawn $740 million from the new facility, using the proceeds to repay outstanding balances from a prior credit agreement. This restructuring extends the company’s financial runway, giving it the flexibility to execute on investment opportunities while managing existing debt.
Key Terms of the Credit Facility
- Total Commitment:$1.35 billion, with an option to increase up to $1.75 billion.
- Loan Components:$650 million revolving credit facility and $700 million term loan.
- Interest Rates: Based on multiple benchmark rates, with margins tied to Hines Global’s leverage.
- Maturity Date: March 12, 2028, with two optional one-year extensions.
Financial Covenants and Asset Requirements
The agreement establishes financial covenants that require Hines Global to maintain specific debt-to-asset ratios and minimum levels of unencumbered assets. At all times, the company must hold at least five unencumbered U.S. properties with a combined value of at least $500 million and an average occupancy rate of 80 percent or higher.
In addition to the loan’s structural requirements, the lenders involved have longstanding financial relationships with Hines Global, spanning investment banking, trust services, and other financial transactions. The new facility also opens the door for future foreign exchange and derivative arrangements between the parties.
Strategic Impact
With a maturity date set for 2028 and options for two one-year extensions, the credit facility provides Hines Global with a longer-term financing structure. This move strengthens the company’s ability to navigate market conditions while keeping its capital structure aligned with its growth strategy.
Share
Read More Articles
