Walker & Dunlop Closes $200 Million Term Loan Increase

Rhea-AI Summary

Walker & Dunlop (NYSE: WD) announced the closure of a $200 million incremental loan under its senior secured term loan facility. This loan, which matures in December 2028, will be directed towards repaying debt from the Alliant Capital acquisition and fortifying the company's balance sheet. The repayment is expected to lower annual debt service costs by eliminating mandatory principal repayments. JP Morgan acted as the Administrative Agent and Lead Arranger for this loan.

Positive

• Closure of $200 million incremental loan improves liquidity.
• Repayment of Alliant Capital debt reduces annual debt service payments.
• Operational efficiency expected through enhanced capital strategy.

Negative

• Increased cost of capital due to the new loan's interest rate.

BETHESDA, Md.--(BUSINESS WIRE)-- Walker & Dunlop, Inc. (NYSE: WD; the “Company”) today announced that it closed a $200 million incremental loan under its senior secured term loan facility. The incremental term loan bears interest at a rate equal to adjusted Term SOFR plus 3.00% per annum and matures in December 2028. JP Morgan served as Administrative Agent and Lead Arranger.

Proceeds from the offering will be used to repay debt assumed in the Company’s acquisition of Alliant Capital and strengthen its balance sheet for general corporate purposes. The payoff of the Alliant debt will reduce the Company’s annual debt service payments by eliminating mandatory principal repayments required by the Alliant Capital debt, partially offset by the increased cost of capital, and create operational efficiency as it manages its capital strategy.

About Walker & Dunlop

Walker & Dunlop (NYSE: WD) is one of the largest providers of capital to the commercial real estate industry in the United States, enabling real estate owners and operators to bring their visions of communities — where Americans live, work, shop and play — to life. Our people, brand and technology make W&D one of the most insightful and customer-focused firms in our industry. With more than 1,400 employees across every major U.S. market, Walker & Dunlop has consistently been named one of Fortune's Great Places to Work^® and is committed to making the commercial real estate industry more inclusive and diverse while creating meaningful social, environmental, and economic change in our communities.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230112005848/en/

Investors:

Kelsey Duffey

Investor Relations

Phone 301.202.3207

investorrelations@walkeranddunlop.com

Media:

Nina H. von Waldegg

VP, Public Relations

Phone 301.564.3291

info@walkeranddunlop.com

Phone  301.215.5500

Source: Walker & Dunlop, Inc.

FAQ

What is the purpose of Walker & Dunlop's recent $200 million loan?

The loan will be used to repay debt from the Alliant Capital acquisition and strengthen the company's balance sheet.

How will the $200 million loan impact Walker & Dunlop's financials?

It will lower annual debt service payments by eliminating mandatory principal repayments but may increase overall capital costs.

Who arranged the $200 million loan for Walker & Dunlop?

JP Morgan served as the Administrative Agent and Lead Arranger for the loan.

When is the maturity date for Walker & Dunlop's incremental loan?

The loan matures in December 2028.