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RREEF units amend revolver, increasing commitments to $120 million
By Devika Patel
Knoxville, Tenn., Dec. 28 – RREEF Property Trust, Inc. subsidiaries amended their Jan. 27, 2023, revolving loan agreement with agent and lender Wells Fargo Bank, NA, on Dec. 27, according to an 8-K filing with the Securities and Exchange Commission.
The amendment added CIBC Inc. to the credit facility as an additional lender; increased the maximum commitment amount to $120 million from $100 million; and revised or suspended covenants.
The amendment also allocated the maximum commitment amount between the revolving commitment and the construction commitment.
The maximum amount of $120 million was bifurcated by the amendment with $75.6 million allocated to the revolving commitment and $44.4 million allocated to the construction commitment.
Also under the amendment, the Wells Fargo line of credit accrues interest based on the 30-day average of the SOFR rate plus a spread of 225 basis points. The maturity was extended to Dec. 27, 2025 from Feb. 28, 2025 and the minimum debt yield will be reduced to 9.5% from 10% once new appraisals have been completed.
The revolving commitment and construction commitment will both be allocated 70.83% to Wells Fargo and 29.17% to CIBC.
For the revolving commitment, as of Dec. 27, the borrowers’ maximum borrowing capacity was $47.6 million and the borrowers’ outstanding balance was $34.6 million.
For the construction commitment, as of Dec. 27, the borrowers’ maximum borrowing capacity was $44.4 million and the borrowers’ outstanding balance was $21.3 million.
The remaining unfunded portion of the construction commitment is $23.1 million.
RREEF is a continuously offered, non-traded, publicly registered real estate investment trust based in New York.
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