Ladder Capital, a diversified commercial real estate finance platform, recently closed and subsequently upsized a revolving credit facility with commitments of $850 million. The credit facility has an “accordion” feature under which the company may further increase the total borrowing availability to up to $1.25 billion. The credit facility replaced Ladder’s prior $324 million revolving credit facility, which had no balance drawn at the time the credit facility closed.
The credit facility, which more than doubled Ladder’s existing revolving credit facility at a significantly lower cost of funds, has a maturity date of Dec. 20, 2028, and up to two six-month extensions thereafter at the company’s option. The larger credit facility is expected to further enhance the liquidity and flexibility of the company’s balance sheet. Without changing any commitments, the agreement governing the credit facility will be automatically replaced by an unsecured investment grade agreement if certain debt instruments of the company receive investment grade ratings from two rating agencies. The margins for borrowings under the credit facility are tighter than that of Ladder’s prior revolving credit facility and further adjust based on the company’s credit rating.
“We are pleased to see our strategic plans coming together. Upsizing our revolving credit facility is a crucial step as we continue on our path toward potential investment grade ratings,” Brian Harris, CEO of Ladder, said. “The success of this transaction reflects our strong relationships with financial partners, our differentiated approach to financing and our commitment to building enduring value through a commercial real estate finance platform grounded in stability, discipline and long-term resilience.”
A total of 10 lenders participated in the credit facility. JPMorgan Chase Bank is the administrative agent and collateral agent for the credit facility, and JPMorgan, Wells Fargo Securities, Bank of America, M&T Bank and Société Generale are acting as joint bookrunners and joint lead arrangers. Barclays Bank, Citibank, Raymond James Bank and U.S. Bank are acting as joint lead arrangers, and along with Wells Fargo Bank, Bank of America, M&T Bank and Société Generale are acting as syndication agents. Deutsche Bank AG (New York branch) is acting as documentation agent.
