Timbercreek Financial Expands Credit Facilities to $600 Million
Timbercreek Financial Expands Credit Facilities to $600 Million
Timbercreek Financial Corp. (TSX: TF) is excited to share that it has successfully secured a new and improved credit facility. This significant update marks a milestone in the company's commitment to enhancing its financial capabilities. With the recent agreement made with a group of nine lenders, Timbercreek Financial has increased its revolving credit facilities to a substantial $600 million, a rise from the previous limit of $510 million.
Details of the New Credit Facility
The revamped credit agreement encompasses a $20 million swingline facility, ensuring Timbercreek has quick access to funds when needed. Additionally, the agreement includes a notable $100 million accordion feature designed for future growth, allowing for potential expansion without the burden of standby commitment fees. This structure gives Timbercreek flexibility to engage in various corporate activities that align with its strategic vision.
Strategic Importance of the Facility
The upsized credit facility reflects the strong confidence lenders have in Timbercreek’s financial robustness and strategic direction. The funds acquired from this New Credit Agreement will primarily support general corporate objectives, particularly in financing net mortgage investments and exploring new acquisition opportunities. Timbercreek's proactive approach in structuring such agreements illustrates its dedication to both investor returns and market adaptability.
The Role of Toronto-Dominion Bank
Continuing its partnership with Timbercreek, the Toronto-Dominion Bank is set to serve as the sole lead arranger, sole book-runner, and administration agent for this credit facility. Their involvement adds a layer of credibility and experience, which is crucial as Timbercreek navigates its financial future. Together, they aim to leverage their combined expertise in optimizing the utilization of this expanded credit.
About Timbercreek Financial
Timbercreek Financial is well-regarded in the non-bank commercial real estate lending arena, providing tailored, shorter-duration financing solutions to a diverse range of commercial real estate investors. Their service-oriented approach differentiates them from traditional financial institutions, with a focus on executing transactions swiftly and offering terms that are often more flexible. With a commitment to thorough underwriting and active management, Timbercreek strives to deliver strong, risk-adjusted returns that satisfy both borrowers and investors.
Frequently Asked Questions
What is the new credit facility amount secured by Timbercreek Financial?
Timbercreek Financial has secured a new credit facility amounting to $600 million.
How does the accordion feature in the credit agreement work?
The $100 million accordion feature allows Timbercreek to expand its credit capacity in the future without incurring standby commitment fees.
Who is the sole lead arranger for this credit facility?
The Toronto-Dominion Bank is serving as the sole lead arranger, sole book-runner, and administration agent for the facility.
What are the primary uses for the funds from the new credit facility?
The funds will be used for general corporate purposes, including net mortgage investments and potential acquisitions.
How does Timbercreek Financial differentiate itself from traditional banks?
Timbercreek Financial offers a more flexible and service-oriented approach, focusing on speedy execution and borrower-specific needs in the commercial real estate sector.
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