UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.03 | Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
On November 25, 2019, Paramount Group, Inc. (the “Company”) entered into a $1.25 billion mortgage loan agreement secured by 1633 Broadway, a 2.5 million square foot office building located on Broadway between 50th and 51st Streets in Manhattan. The new 10-year interest-only loan has a fixed rate of 2.99% and matures in December 2029. The loan contains customary covenants that may cause the lender to accelerate the due date of the entire amount borrowed, in the event of a breach or a default. The proceeds from the refinancing were used to repay the existing $1.05 billion loan that bore interest at a weighted average rate of 3.55% and was scheduled to mature in December 2022. The Company realized net proceeds of approximately $179 million after the repayment of the existing loan, swap breakage costs and closing costs.
| Item 7.01 | Regulation FD Disclosure. |
The Company issued a press release in connection with the refinancing, which is attached hereto as Exhibit 99.1.
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 | |||
| 99.1 |
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| 104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PARAMOUNT GROUP, INC. | ||
| By: |
/s/ Wilbur Paes | |
| Name: |
Wilbur Paes | |
| Title: |
Executive Vice President, Chief Financial Officer and Treasurer | |
Date: December 2, 2019