Real estate fund increases revolving credit facility to $60 million
24 May 2013 Newton
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RMR Real Estate Income Fund (RIF) increased its revolving credit facility with BNP Paribas Prime Brokerage by $10 million to $60 million.
The credit facility bears interest at LIBOR plus 95 basis points and it has a 270 day rolling term that resets daily. The credit facility requires RIF to pledge portfolio securities as collateral with an aggregate value of up to 250 percent of the loan balance outstanding.
The credit facility also permits BNP Paribas to lend portfolio securities pledged by RIF with an aggregate value up to the loan balance outstanding, and RIF will receive a portion of the revenue earned by the bank in connection with RIF’s lending of its portfolio securities.
RIF expects to use the credit facility to fund additional investments and for additional financial flexibility in managing its investment portfolio.
The credit facility bears interest at LIBOR plus 95 basis points and it has a 270 day rolling term that resets daily. The credit facility requires RIF to pledge portfolio securities as collateral with an aggregate value of up to 250 percent of the loan balance outstanding.
The credit facility also permits BNP Paribas to lend portfolio securities pledged by RIF with an aggregate value up to the loan balance outstanding, and RIF will receive a portion of the revenue earned by the bank in connection with RIF’s lending of its portfolio securities.
RIF expects to use the credit facility to fund additional investments and for additional financial flexibility in managing its investment portfolio.
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