JBG SMITH Properties Enters $690M Revolving Credit Agreement

What Happened

• JBG SMITH Properties LP entered into a Second Amended and Restated Credit Agreement on August 27, 2026, establishing a $690.0 million senior unsecured revolving credit facility maturing August 27, 2030 (with two optional six‑month extensions). This refinances and replaces the prior $750.0 million facility that was scheduled to mature June 29, 2027. As of August 27, 2026, $230.0 million was drawn under the new revolver.
• On the same date the company also amended several term loan agreements: (i) a Third Amendment to the Tranche A‑1 credit agreement to align financial covenants with the new revolver; (ii) a Second Amendment to the Tranche A‑2 credit agreement that extends $228.9 million of the $400.0 million term loan to August 25, 2028 (with additional extension options) and added a $15.0 million incremental term loan; and (iii) amendments to the $120.0 million 2023 term loan to align covenants and remove a 0.10% SOFR spread adjustment.

Key Details

• Revolving Credit Facility: $690.0M senior unsecured revolver, maturity Aug 27, 2030; $230.0M drawn as of Aug 27, 2026; lenders include Bank of America, N.A. as administrative agent.
• Optional capacity: lenders may increase the facility or add term loans up to $560.0M in aggregate if they agree to provide additional commitments.
• Interest & fees: borrowings at SOFR + 1.30%–1.75% (or base rate + 0.30%–0.75%), facility fee 0.15%–0.30% on total commitment, extension fee for revolver 0.075%; Tranche A‑2 extended portion may see higher spreads and no 0.10% SOFR adjustment after Jan 13, 2028.
• Financial covenants (aligned across amended facilities) include limits such as total indebtedness ≤60% of valuation, combined EBITDA to fixed charges ≥1.50x, secured indebtedness ≤50% of valuation, unencumbered EBITDA to unsecured interest ≥1.75x, unsecured indebtedness ≤55% of unencumbered valuation, and secured recourse indebtedness ≤10% of valuation.

Why It Matters

• The new revolver and coordinated amendments extend JBG SMITH’s near‑term liquidity and push out a major maturity (prior facility due mid‑2027), reducing immediate refinancing risk and giving the company flexibility to borrow, repay and redraw under the revolver.
• Aligning covenants across the revolver and term loans creates a consistent set of financial tests that the company must meet; these covenants may affect leverage, capital allocation and distributions if performance weakens.
• The incremental capacity and extension options provide optionality for funding needs, while interest spreads and fees indicate the ongoing cost of this secured/unsecured credit capacity.