Daily News: February 10, 2017

NexBank Provides $25MM Facility to First Foundation


First Foundation entered into an agreement for a loan in an aggregate amount not to exceed $25 million with NexBank, a Texas savings bank.

The maturity date of the loan agreement is February 8, 2022. The company may, subject to certain conditions, extend the maturity date on no more than two successive occasions to a date that is 364 days after the then-effective maturity date.

Loans outstanding bear interest at the rate equal to the sum of 90-day LIBOR for the then-current LIBOR Reset Period plus 350 basis points (3.50%).

Proceeds of the loans will be used by First Foundation for working capital and general corporate purposes, including the contribution of capital to its subsidiaries.

First Foundation’s obligations under the loan agreement are secured pursuant to the pledge and security agreement, dated as of February 8, 2017, by and between the Company and Nexbank, by a first priority security interest in all of the outstanding capital stock of the Bank.