Front Yard extends $250 million agreement to 2020, lowers interest

By Sarah Lizee

Olympia, Wash., April 11 – Front Yard Residential Corp. amended and extended its existing $250 million loan and security agreement on April 5, according to an 8-K filing with the Securities and Exchange Commission.

The company, acting through its subsidiaries, entered into the amendment with Nomura Corporate Funding Americas, LLC as lender.

The termination date was extended by two years to April 5, 2020, with a potential additional one-year extension to April 5, 2021.

The amendment retained a maximum total borrowing amount of $250 million, of which $150 million is uncommitted but available to the company, subject to eligibility requirements.

Additionally, the interest rate spread was reduced to one-month Libor plus 300 basis points from one-month Libor plus 325 bps. The facility fee was also reduced.

Also, the advance rates were increased for both non-stabilized properties and stabilized rental properties financed under the facility.

Other terms of the facility are substantially the same, the filing noted.

Front Yard Residential, formerly known as Altisource Residential Corp., is a Christiansted, Virgin Islands-based single-family housing provider.

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