Walker & Dunlop announced plans to borrow an incremental $200 million under its senior secured term loan agreement, increasing the total outstanding principal balance to $795 million. The company will use $115 million of the proceeds to refinance debt assumed in the acquisition of Alliant Capital, and the remaining $85 million of proceeds will be used to strengthen its balance sheet for general corporate purposes. By refinancing the debt assumed in the acquisition of Alliant, the company will significantly reduce its annual debt service payments and create greater operational efficiency as the company manages its capital strategy moving forward.
JP Morgan is leading the marketing of the incremental borrowing, which is expected to have conventional terms for this type of financing and is anticipated to close in January 2023, subject to market and other customary conditions. The company expects to receive ratings from Standard & Poor’s and Moody’s Investors Services related to this transaction.
