Ladder Capital Corp Enters Credit Agreement for Revolving Credit Facility

On December 20, 2024, Ladder Capital Corp (NYSE:LADR) announced that it has entered into a Credit and Guaranty Agreement with Ladder Capital Finance Holdings LLLP, Ladder Corporate Revolver I LLC, and Ladder Capital Finance Corporation among others. This agreement establishes a $725,000,000 revolving credit facility with additional borrowing capacity for letters of credit, maturing on December 20, 2028, extendable for up to two 6-month periods. The agreement allows for incremental revolving commitments up to an aggregate facility size of $1,250,000,000 under certain conditions.

The new Credit Agreement replaces the Existing Credit Agreement dated February 26, 2016, and has adjustable interest rates based on different options chosen by the Borrowers. Borrowings are subject to a margin based on Parent’s credit rating. Additionally, facility fees are applicable based on the average daily amount of revolving commitments.

Borrowers under the Credit Agreement have the flexibility to prepay amounts outstanding at any time without premium or penalty, and borrowings can be reborrowed until final maturity. The agreement is secured through a first priority lien on certain capital stock of the Borrowers, with guarantors securing their obligations under the Credit Agreement.

The Credit Agreement also includes customary affirmative and negative covenants, as well as events of default. There is a provision for automatic amendment of the agreement, subject to certain conditions, which would lead to the release and discharge of specific obligations.

While the foregoing summary provides an overview of the Credit Agreement entered into by Ladder Capital Corp, the full terms are detailed in the complete agreement filed as Exhibit 10.1. For a comprehensive understanding, please refer to the original document filed with the Securities and Exchange Commission.

Additionally, Ladder Capital Corp has filed the requisite material with the SEC related to the Credit Agreement. The Company has provided the necessary details in the Form 8-K, outlining the specifics and implications of this financial arrangement.

This move reflects Ladder Capital Corp’s strategic financial decision-making and aims to enhance its financial flexibility and liquidity in line with its business objectives and market opportunities.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Ladder Capital’s 8K filing here.

About Ladder Capital

Ladder Capital Corp operates as an internally-managed real estate investment trust in the United States. It operates through three segments: Loans, Securities, and Real Estate. The Loans segment originates conduit first mortgage loans that are secured by cash-flowing commercial real estate; and originates and invests in balance sheet first mortgage loans secured by commercial real estate properties that are undergoing transition, including lease-up, sell-out, and renovation or repositioning.