Item 1.01 Entry into a Material Definitive Agreement.

On December 17, 2021, Paramount Group Operating Partnership LP, the operating partnership through which Paramount Group, Inc. conducts its business (collectively, the "Company"), refinanced its existing senior unsecured revolving credit facility with a new $750 million senior unsecured revolving credit facility (the "Credit Facility") that matures in March 2026, with two six-month extension options. The interest rate on the new Credit Facility is 115 basis points over the secured overnight financing rate ("SOFR") with adjustments based on the term of advances, plus a facility fee of 20 basis points. The Credit Facility also features a sustainability-linked pricing component such that if the Company meets certain sustainability performance targets, the applicable per annum interest rate will be reduced by one basis point.

The Credit Facility contains certain restrictions and covenants that require the Company, to maintain, on an ongoing basis, (i) a "Leverage Ratio" not to exceed 60%, which may be increased to 65% for any fiscal quarter in which an acquisition of real estate is completed, and for up to the next three subsequent consecutive fiscal quarters, (ii) a "Secured Leverage Ratio" not to exceed 50%, (iii) a fixed charge coverage ratio of at least 1.50, (iv) an "Unsecured Leverage Ratio" not to exceed 60%, which may be increased to 65% for any fiscal quarter in which an acquisition of real estate is completed, and for up to the next three subsequent consecutive fiscal quarters and (v) an "Unencumbered Interest Coverage Ratio" of at least 1.75. The Credit Facility also contains customary representations and warranties, limitations on permitted investments and other covenants.

The Joint Bookrunners for the Credit Facility are BofA Securities, Inc., Wells Fargo Securities, LLC, JPMorgan Chase Bank, N.A. and U.S. Bank National Association. The Joint Lead Arrangers are BofA Securities, Inc., Wells Fargo Securities, LLC, JPMorgan Chase Bank, N.A., U.S. Bank National Association, Citizens Bank, National Association, and Capital One, National Association. Bank of America, N.A. serves as Administrative Agent.

The foregoing summary of the Credit Facility, contained in this Current Report on Form 8-K, is qualified in its entirety by reference to the Second Amended and Restated Credit Agreement (the "Credit Agreement") dated as of December 17, 2021, among Paramount Group Operating Partnership LP, as the Borrower, Paramount Group, Inc., certain subsidiaries of Paramount Group, Inc. from time to time party thereto, as Guarantors, each lender from time to time party thereto, Bank of America, N.A., as Administrative Agent, and the financial institutions party thereto as L/C Issuers, which is attached hereto as Exhibit 10.1 and incorporated herein by reference.




Item 2.03  Creation of a Direct Financial Obligation or an Obligation under an
           Off-Balance Sheet Arrangement of a Registrant.

The summary of the Credit Facility contained in Item 1.01 above is incorporated by reference herein into this Item 2.03.

Item 7.01 Regulation FD Disclosure.

A copy of the press release issued by the Company to announce the terms of the Credit Agreement as discussed in Item 1.01 above is included as Exhibit 99.1 to this Current Report on Form 8-K.

The information in Item 7.01 of this Current Report and Exhibit 99.1 attached hereto is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section. Such information shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, unless it is specifically incorporated by reference therein.

Item 9.01 Financial Statements and Exhibits.





(d) Exhibits:




 Exhibit
 Number       Description

   10.1         Second Amended and Restated Credit Agreement dated as of December
              17, 2021, among Paramount Group Operating Partnership LP, as the
              Borrower, Paramount Group, Inc., certain subsidiaries of Paramount
              Group, Inc. from time to time party thereto, as Guarantors, each
              lender from time to time party thereto, Bank of America, N.A., as
              Administrative Agent, and the financial institutions party thereto as
              L/C Issuers

   99.1         Press release dated December 20, 2021 and entitled "Paramount
              Refinances Revolving Credit Facility"

   104        Cover Page Interactive Data File (embedded within the Inline XBRL
              document)

--------------------------------------------------------------------------------

© Edgar Online, source Glimpses