Ladder Announces $850 Million Revolving Credit Facility to Upsize and Extend Existing Facility and Reduce Cost of Debt
Ladder Capital Corp (NYSE: LADR) has secured an $850 million revolving credit facility, more than doubling its previous $324 million facility at a significantly lower cost. The new facility includes an accordion feature that could increase borrowing availability up to $1.25 billion.
The facility matures on December 20, 2028, with options for two 6-month extensions. Notably, the agreement will automatically convert to an unsecured investment grade agreement if certain debt instruments receive investment grade ratings from two agencies. Currently, Ladder is rated Ba1 by Moody's and BB+ by Fitch (both with positive outlook), and BB by S&P.
The transaction involved 10 lenders, with JPMorgan Chase Bank serving as Administrative and Collateral Agent. The facility's margins are tighter than the previous one and will adjust based on the company's credit rating.
Ladder Capital Corp (NYSE: LADR) ha ottenuto un prestito rotativo di 850 milioni di dollari, più del doppio rispetto ai precedenti 324 milioni di dollari, a un costo significativamente inferiore. La nuova struttura include una caratteristica di tipo accordion che potrebbe aumentare la disponibilità di prestiti fino a 1,25 miliardi di dollari.
La scadenza del prestito è fissata per il 20 dicembre 2028, con opzioni per due estensioni di 6 mesi. È importante notare che l'accordo si convertirà automaticamente in un accordo di investimento non garantito e di grado investimentale se alcuni strumenti di debito riceveranno valutazioni di grado investimentale da due agenzie. Attualmente, Ladder è classificata Ba1 da Moody's e BB+ da Fitch (entrambe con prospettiva positiva), e BB da S&P.
La transazione ha coinvolto 10 finanziatori, con JPMorgan Chase Bank che funge da agente amministrativo e di garanzia. I margini della struttura sono più stretti rispetto al precedente e si adegueranno in base alla valutazione creditizia dell'azienda.
Ladder Capital Corp (NYSE: LADR) ha obtenido una línea de crédito renovable de 850 millones de dólares, más del doble de la anterior de 324 millones de dólares, a un costo significativamente más bajo. La nueva línea incluye una característica de tipo acordeón que podría aumentar la disponibilidad de préstamos hasta 1.25 mil millones de dólares.
La línea vence el 20 de diciembre de 2028, con opciones para dos extensiones de 6 meses. Cabe destacar que el acuerdo se convertirá automáticamente en un acuerdo de grado de inversión no garantizado si ciertos instrumentos de deuda reciben calificaciones de grado de inversión de dos agencias. Actualmente, Ladder tiene calificación Ba1 por Moody's y BB+ por Fitch (ambas con perspectiva positiva), y BB por S&P.
La transacción involucró a 10 prestamistas, con JPMorgan Chase Bank actuando como Agente Administrativo y de Garantía. Los márgenes de la línea son más ajustados que los anteriores y se ajustarán en función de la calificación crediticia de la compañía.
레더 캐피탈 코퍼레이션 (NYSE: LADR)는 8억 5천만 달러 규모의 회전 신용 시설을 확보하여 기존의 3억 2천4백만 달러 시설보다 두 배 이상 증가했으며, 비용 또한 훨씬 낮습니다. 새로운 시설에는 12억 5천만 달러까지 대출 가능성을 늘릴 수 있는 아코디언 기능이 포함되어 있습니다.
이 시설은 2028년 12월 20일 만료되며, 두 번의 6개월 연장 옵션이 있습니다. 특히, 특정 채무 상품이 두 개의 기관으로부터 투자 적격 등급을 받으면 계약이 자동으로 무담보 투자 등급 계약으로 전환될 것입니다. 현재 레더는 무디스에서 Ba1, 피치에서 BB+ (모두 긍정적인 전망), S&P에서 BB로 평가받고 있습니다.
이 거래에는 10명의 대출자가 참여했으며, JPMorgan Chase Bank가 관리 및 담보 대리인 역할을 수행했습니다. 이 시설의 마진은 이전보다 더 긴축되었으며, 회사의 신용 등급에 따라 조정됩니다.
Ladder Capital Corp (NYSE: LADR) a sécurisé un crédit renouvelable de 850 millions de dollars, plus du double de son précédent crédit de 324 millions de dollars, à un coût significativement inférieur. La nouvelle structure inclut une fonctionnalité d'accordéon qui pourrait augmenter la disponibilité d'emprunt jusqu'à 1,25 milliard de dollars.
Le prêt arrive à échéance le 20 décembre 2028, avec des options pour deux prolongations de 6 mois. Il est à noter que l'accord se convertira automatiquement en un accord de crédit non garanti de catégorie investissement si certains instruments de dette reçoivent des notations de catégorie investissement de deux agences. Actuellement, Ladder est notée Ba1 par Moody's et BB+ par Fitch (toutes deux avec perspective positive), et BB par S&P.
La transaction a impliqué 10 prêteurs, JPMorgan Chase Bank agissant en tant qu'agent administratif et de garantie. Les marges de l'établissement sont plus serrées que celles de l'ancienne et s'ajusteront en fonction de la notation de crédit de la société.
Ladder Capital Corp (NYSE: LADR) hat eine 850 Millionen Dollar umfassende revolvierende Kreditlinie gesichert, die mehr als doppelt so hoch ist wie die vorherige von 324 Millionen Dollar und zu deutlich niedrigeren Kosten. Die neue Kreditlinie beinhaltet ein Akkordeon-Feature, das die Kreditverfügbarkeit auf bis zu 1,25 Milliarden Dollar erhöhen könnte.
Die Kreditlinie läuft am 20. Dezember 2028 aus, mit Optionen für zwei 6-monatige Verlängerungen. Bemerkenswert ist, dass der Vertrag automatisch in einen unbesicherten Kreditvertrag mit Investment-Grade-Status umgewandelt wird, wenn bestimmte Schuldeninstrumente von zwei Agenturen Investment-Grade-Bewertungen erhalten. Derzeit wird Ladder von Moody's mit Ba1 und von Fitch mit BB+ (beide mit positiver Ausblick) sowie von S&P mit BB bewertet.
Die Transaktion erfolgte mit 10 Kreditgebern, wobei JPMorgan Chase Bank als Verwaltungs- und Sicherheitenagent tätig war. Die Margen dieser Einrichtung sind strenger als die vorherige und werden basierend auf der Kreditwürdigkeit des Unternehmens angepasst.
- Secured $850M revolving credit facility, more than doubling previous $324M facility
- Lower cost of funds compared to previous facility
- Potential to increase borrowing capacity to $1.25B through accordion feature
- Extended maturity to December 2028 with two 6-month extension options
- Automatic conversion to unsecured investment grade agreement upon rating upgrade
- None.
Insights
This credit facility expansion represents a substantial enhancement to LADR's financial flexibility. The increase from
The automatic conversion clause to an unsecured investment grade agreement upon rating upgrades is particularly strategic. With Moody's (Ba1) and Fitch (BB+) ratings just one notch below investment grade and positive outlooks, LADR is positioning itself for potential rating upgrades. This would trigger lower borrowing costs and improved capital market access.
The participation of 10 major financial institutions, led by JPMorgan, signals strong market confidence in LADR's business model and credit quality. For context, in the current commercial real estate environment, securing increased credit facilities at better terms is noteworthy, suggesting lenders' positive view of LADR's risk profile and management execution.
The refinancing demonstrates excellent liability management, with three key advantages:
- Cost reduction through tighter margins compared to the previous facility
- Maturity extension to 2028 with two 6-month extension options
- Built-in rating-sensitive pricing that incentivizes continued credit quality improvement
The zero balance on the previous facility indicates strong working capital management and strategic timing of the refinancing. The stepped pricing structure linked to credit ratings creates a clear pathway for further cost reductions as LADR approaches investment grade status. The broad syndicate of top-tier banks provides diversified funding sources and validates the company's creditworthiness.
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 December 20, 2028, and up to two 6-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. Ladder is currently rated just one notch below investment grade from Moody’s (Ba1) and Fitch (BB+), with a positive outlook from both agencies. S&P rates Ladder at BB.
“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,” said Brian Harris, Ladder’s Chief Executive Officer. “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, N.A. (“JPMorgan”) is the Administrative Agent and Collateral Agent for the Credit Facility, and JPMorgan, Wells Fargo Securities, LLC, Bank of America, N.A., M&T Bank and Société Generale are acting as Joint Bookrunners and Joint Lead Arrangers. Barclays Bank PLC, Citibank, N.A., Raymond James Bank, and
About Ladder
Ladder Capital Corp (NYSE: LADR) is a leading diversified commercial real estate finance platform that specializes in underwriting commercial real estate across the capital stack. With
Since 2008, we have invested over
We are internally managed and members of our management team and board of directors collectively own more than
Ladder is headquartered in
Forward-Looking Statements
Certain statements in this release may constitute “forward-looking” statements, including those regarding the Credit Facility and expectations related to the Credit Facility’s impact on the Company’s financial condition, the Company’s ability to achieve investment grade credit ratings and any potential future change in those credit ratings, the potential for the Credit Agreement to be automatically amended, the Company’s access to the accordion feature of the Credit Facility, the impact of macroeconomic factors beyond the Company's control, including changes in interest rates and the Company’s strategic plans and objectives. These forward-looking statements are based on management’s current opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results. These forward-looking statements are only predictions, not historical fact, and involve certain risks and uncertainties, as well as assumptions. Actual results, levels of activity, performance, achievements and events could differ materially from those stated, anticipated or implied by such forward-looking statements. While Ladder believes that its assumptions are reasonable, it is very difficult to predict the impact of known factors, and, of course, it is impossible to anticipate all factors that could affect actual results on the Company’s business. There are a number of risks and uncertainties that could cause actual results to differ materially from forward-looking statements made herein including, most prominently, the Company’s ability to achieve investment grade credit ratings and any potential future change in those credit ratings, the potential for the Credit Agreement to be automatically amended, the Company’s access to the accordion feature of the Credit Facility and other market trends in the Company’s industry, interest rates and real estate values and the risks discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as well as its consolidated financial statements, related notes, and other financial information appearing therein, and its other filings with the
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Ladder Capital Corp Investor Relations
917-369-3207
investor.relations@laddercapital.com
Source: Ladder Capital Corp
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