Chicago Atlantic Real Estate Finance Closes on $50 Million Unsecured Term Loan to Fund Deployment of New Investments

Rhea-AI Summary

Chicago Atlantic Real Estate Finance (NASDAQ: REFI) has secured a $50 million unsecured term loan from institutional private lending platforms. The loan, maturing in October 2028, carries a fixed 9.0% interest rate and is interest-only. The funds were used to repay existing borrowings on the company's $110 million senior secured revolving credit facility and for working capital. Egan-Jones has assigned a BBB+ rating to both the company and the senior unsecured term loan, reflecting investment grade status.

Positive

• Secured $50 million in new financing to fund investments
• Received BBB+ investment grade rating from Egan-Jones
• Extended debt maturity profile to October 2028
• Increased operational liquidity through unsecured financing

Negative

• High fixed interest rate of 9.0% on the new term loan
• Prepayment penalties apply to early loan repayment

Assigned BBB+ Investment Grade Rating from Egan-Jones

CHICAGO, Oct. 23, 2024 (GLOBE NEWSWIRE) -- Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI) (“Chicago Atlantic” or the “Company”), a commercial mortgage real estate investment trust, today announced that the Company entered into a $50.0 million unsecured term loan from two institutional private lending platforms to fund the Company’s future investments and other general corporate purposes.

The unsecured term loan matures in October 2028, is interest only and bears a fixed cash interest rate of 9.0%. The Company can prepay the term loan in whole or in part at any time and from time to time subject to applicable prepayment penalties. The full balance of the loan was drawn at closing and was used to repay current outstanding borrowings on the Company’s $110.0 million senior secured revolving credit facility and for other working capital purposes.

The Company also announced that Egan-Jones has assigned a rating of BBB+ to both the Company and the senior unsecured term loan.

Peter Sack, Co-Chief Executive Officer, added, “This unsecured note is the latest example of our ability to source accretive financing that further enhances our operational liquidity to pursue additional opportunities within our active originations pipeline.”

About Chicago Atlantic Real Estate Finance, Inc.
Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI) is a market-leading commercial mortgage REIT utilizing significant real estate, credit and cannabis expertise to originate senior secured loans primarily to state-licensed cannabis operators in limited-license states in the United States. REFI is part of the Chicago Atlantic platform which has offices in Miami, Florida, and Chicago, Illinois and has deployed over $2.2 billion in credit and equity investments to date.

Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect our current views and projections with respect to, among other things, future events and financial performance. Words such as “believes,” “expects,” “will,” “intends,” “plans,” “guidance,” “estimates,” “projects,” “anticipates,” and “future” or similar expressions are intended to identify forward- looking statements. These forward-looking statements, including statements about our future growth and strategies for such growth, are subject to the inherent uncertainties in predicting future results and conditions and are not guarantees of future performance, conditions or results. More information on these risks and other potential factors that could affect our business and financial results is included in our filings with the SEC. New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect us. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Contact:
Tripp Sullivan
SCR Partners
IR@REFI.reit

FAQ

What is the interest rate on Chicago Atlantic's (REFI) new $50 million term loan?

The term loan bears a fixed cash interest rate of 9.0%.

When does Chicago Atlantic's (REFI) new unsecured term loan mature?

The unsecured term loan matures in October 2028.

What credit rating did Egan-Jones assign to Chicago Atlantic (REFI)?

Egan-Jones assigned a BBB+ rating to both Chicago Atlantic and its senior unsecured term loan.

How will Chicago Atlantic (REFI) use the $50 million term loan proceeds?

The loan proceeds were used to repay outstanding borrowings on the company's $110 million senior secured revolving credit facility and for working capital purposes.