Altisource Portfolio Solutions, an integrated service provider and marketplace for the real estate and mortgage industries, and its subsidiary, Altisource S.à r.l., signed an agreement with STS Mater Fund, an investment fund managed by Deer Park Road Management Company, that provides Altisource with a revolving line of credit for general corporate purposes. The term of the credit agreement is three years.
Under the terms of the credit agreement, the lender will make loans to Altisource from time to time in amounts requested by Altisource and Altisource may voluntarily prepay all or any portion of the outstanding loans. The credit agreement provides Altisource the ability to borrow up to $20 million through June 22, 2022, up to $15 million through June 22, 2023, and up to $10 million until the end of the term. The credit agreement contains no financial covenants.
“We are pleased to secure this revolver from Deer Park. This demonstrates Deer Park’s confidence in Altisource’s long term prospects and provides us with additional liquidity while we are temporarily impacted by the pandemic. We anticipate that demand for our default related business will begin to return at the end of this year and stabilize in 2023. We also continue to make progress with our origination business and believe it will be a significant contributor to growth and shareholder value,” William B. Shepro, chairman and CEO of Altisource, said.
