Fund’s $50 million credit facility with BNP prime brokerage
18 June 2012 Massachussetts
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RMR Real Estate Income Fund (RIF) has entered into a new $50 million revolving credit facility with BNP Paribas prime brokerage. The new credit facility bears interest at LIBOR plus 95 basis points and it has a 270 day rolling term that resets daily.
It requires RIF to pledge portfolio securities as collateral up to 250 percent of the loan balance outstanding. The new credit facility also permits BNP to lend portfolio securities pledged by RIF up to the loan balance outstanding, and RIF will receive a portion of the revenue earned in connection with lending its portfolio securities.
RIF expects to use the new credit facility to repay amounts outstanding under, and terminate, its existing $10 million revolving credit facility, to fund additional investments, and for additional financial flexibility in managing its investment portfolio.
It requires RIF to pledge portfolio securities as collateral up to 250 percent of the loan balance outstanding. The new credit facility also permits BNP to lend portfolio securities pledged by RIF up to the loan balance outstanding, and RIF will receive a portion of the revenue earned in connection with lending its portfolio securities.
RIF expects to use the new credit facility to repay amounts outstanding under, and terminate, its existing $10 million revolving credit facility, to fund additional investments, and for additional financial flexibility in managing its investment portfolio.
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