Walker & Dunlop to Amend and Upsize Senior Secured Term Loan

Rhea-AI Summary

Walker & Dunlop (NYSE: WD) announced plans to borrow an additional $200 million under its senior secured term loan, raising the total to $795 million. The firm intends to use $115 million to refinance debt from the acquisition of Alliant Capital, and $85 million to bolster its balance sheet. JP Morgan is managing the borrowing, expected to close in January 2023, subject to standard conditions.

Positive

• Plans to borrow an additional $200 million to improve financial flexibility.
• Refinancing $115 million of debt will significantly reduce annual service payments.
• Increased borrowing aims to strengthen the company's balance sheet.

Negative

• None.

BETHESDA, Md., Dec. 12, 2022 /PRNewswire/ -- Walker & Dunlop, Inc. (NYSE: WD) (the "Company") today announced plans to borrow an incremental $200 million under its senior secured term loan agreement, increasing the total outstanding principal balance to $795 million. The Company will use $115 million of the proceeds to refinance debt assumed in the acquisition of Alliant Capital, and the remaining $85 million of proceeds will be used to strengthen its balance sheet for general corporate purposes. By refinancing the debt assumed in the acquisition of Alliant, the Company will significantly reduce its annual debt service payments and create greater operational efficiency as the Company manages its capital strategy moving forward.

JP Morgan is leading the marketing of the incremental borrowing, which is expected to have conventional terms for this type of financing and is anticipated to close in January 2023, subject to market and other customary conditions. The Company expects to receive ratings from Standard & Poor's and Moody's Investors Services related to this transaction.

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.

Forward Looking Statements
The statements regarding the expected amount, terms of and anticipated closing date for the incremental loan contained in this press release may constitute forward-looking statements within the meaning of the federal securities laws.

Forward-looking statements relate to expectations, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans, or intentions.

The forward-looking statements contained in this press release reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause actual results to differ significantly from those expressed or contemplated in any forward-looking statement.

While forward-looking statements reflect our good faith projections, assumptions and expectations, they are not guarantees of future results. Furthermore, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by applicable law. Factors that could cause our results to differ materially include, but are not limited to: (1) general economic conditions and multifamily and commercial real estate market conditions, and (2) regulatory and/or legislative changes to Freddie Mac, Fannie Mae or HUD.

For a further discussion of these and other factors that could cause future results to differ materially from those expressed or contemplated in any forward-looking statements, see the section titled "Risk Factors" in our most recent Annual Report on Form 10-K and any updates or supplements in subsequent Quarterly Reports on Form 10-Q and our other filings with the SEC. Such filings are available publicly on our Investor Relations web page at https://www.walkerdunlop.com/.

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SOURCE Walker & Dunlop, Inc.

FAQ

What is Walker & Dunlop's recent borrowing announcement?

Walker & Dunlop plans to borrow an additional $200 million, bringing its total senior secured loan to $795 million.

How will Walker & Dunlop use the $200 million loan?

The company will use $115 million to refinance debt from the acquisition of Alliant Capital and $85 million for general corporate purposes.

When is Walker & Dunlop's new loan expected to close?

The borrowing is anticipated to close in January 2023, pending standard market conditions.

Who is managing the incremental borrowing for Walker & Dunlop?

JP Morgan is leading the marketing of the incremental borrowing.

What impact will the refinancing have on Walker & Dunlop?

Refinancing debt is expected to significantly reduce annual debt service payments, enhancing operational efficiency.