NorthStar's CB Loan II enters into $100 million facility with Citibank

By Tali David

Minneapolis, Oct. 16 - NorthStar Real Estate Income II, Inc. subsidiary CB Loan NT-II, LLC entered into a master repurchase agreement with Citibank, NA on Oct. 15, according to an 8-K filed with the Securities and Exchange Commission.

The facility provides up to $100 million to finance first mortgage loans and senior loan participations secured by commercial real estate.

Borrowings accrue interest at one-month Libor plus 250 basis points to 300 bps. It provides for advance rates up to 75%, depending on asset type, subject to adjustment.

The facility initially matures on Oct. 15, 2016, with a one-year extension option, the filing said. During the initial term, it acts as a revolving credit facility that can be paid down and subsequently re-drawn.

In connection with the facility, NorthStar agreed to guaranty certain obligations under the facility.

The credit facility and guaranty requires CB Loan II to maintain at least $3.75 million and a maximum of $15 million in unrestricted cash, depending on the amount drawn, as of the date of the first funding of a mortgage or participation and at all times thereafter during the term of the loan. In addition, the guaranty contains financial covenants in regards to a tangible net worth that NorthStar Income II must maintain.

NorthStar is a public, non-traded, New York-based real estate investment trust.

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