American Assets Trust, Inc. announced that it has amended and restated its existing term loan agreement. The term loan agreement was amended and restated to, among other things, increase the fully-drawn borrowings from $150 million to $225 million, extend the maturity date from March 1, 2023 to January 5, 2025 (with one, twelve-month extension option) and transition borrowings to the Secured Overnight Financing Rate (SOFR), and away from LIBOR. The $225 million term loan is unsecured.

Additionally, as of the Effective Date, borrowings under the Amended and Restated Term Loan Agreement bear interest at floating rates equal to, at the Operating Partnership's option, either (1) the greater of (a) zero and (b) the applicable Secured Overnight Financing Rate for an interest period of one, three or six months, as selected by the Operating Partnership, plus a SOFR adjustment and a spread (based on the Operating Partnership's consolidated leverage ratio and applicable year of the Term Loan) ranging from 1.20% to 1.90%, or (2) a base rate equal to the highest of (a) 1.0%, (b) the prime rate, (c) the federal funds rate plus 50 bps and (d) the one-month SOFR, plus a SOFR adjustment and 100 bps, plus, in each case, a spread (based on the Operating Partnership's consolidated leverage ratio and applicable year of the Term Loan) ranging from 0.20% to 0.90%. Additionally, the Operating Partnership may elect for borrowings to bear interest based on a ratings-based pricing grid based on the Operating Partnership's then-applicable investment grade debt ratings under the terms set forth in the Amended and Restated Term Loan Agreement. Prior to amending and restating the term loan agreement, the Company entered into interest rate swaps that are intended to fix the interest rate on the $225 million term loan at approximately 5.47% for the first year of the amended and restated term loan and 5.57% for the second year of the amended and restated term loan, subject to adjustments based on the Company's consolidated leverage ratio.

Certain of the banks and financial institutions that are parties to the Amended and Restated Term Loan Agreement and their respective affiliates have in the past provided, are currently providing, and in the future may continue to provide investment banking, commercial banking and other financial services to the Company, Operating Partnership and their affiliates in the ordinary course of business for which they have received and will receive customary compensation.