Walker & Dunlop to Refinance Senior Secured Term Loan

Rhea-AI Summary

Walker & Dunlop (NYSE: WD) announced plans to refinance its senior secured term loan, increasing the principal amount to $600 million. The funds will be used to pay off the existing loan and to finance the pending acquisition of Alliant Capital. The transaction is expected to close in November 2021 and is subject to market conditions, with ratings from S&P and Moody's anticipated.

Positive

• Plans to refinance loan to $600 million will strengthen financial position.
• New loan supports acquisition of Alliant Capital, potentially enhancing growth.

Negative

• Increased debt load may pose risks to financial stability.
• Dependence on market conditions for timely closing of loan.

BETHESDA, Md., Oct. 5, 2021 /PRNewswire/ -- Walker & Dunlop, Inc. (NYSE: WD) today announced plans to refinance its senior secured term loan and increase the aggregate principal amount to $600 million. The company will use the proceeds from the loan to fund repayment of its existing senior secured term loan and to fund its pending acquisition of Alliant Capital. The new loan is expected to have conventional terms for this type of financing and is anticipated to close in November 2021, 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 the largest provider of capital to the multifamily industry in the United States and the fourth largest lender on all commercial real estate including industrial, office, retail, and hospitality. Walker & Dunlop enables real estate owners and operators to bring their visions of communities — where Americans live, work, shop, and play — to life. The power of our people, premier brand, and industry-leading technology enables us to meet any client need – including financing, research, property sales, valuation, and advisory services. With over 1,000 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 loan contained in this press release may constitute forward-looking statements within the meaning of the federal securities laws.

These statements 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 such statement.

While the 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, (2) regulatory and/or legislative changes to Freddie Mac, Fannie Mae or HUD, and (3) any significant delays in receiving, or our ability to ultimately obtain, the required third-party consents to close the loan.

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 www.walkerdunlop.com.

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SOURCE Walker & Dunlop, Inc.

FAQ

What are the details of Walker & Dunlop's loan refinancing plans?

Walker & Dunlop plans to refinance its senior secured term loan, increasing it to $600 million to repay existing debt and fund the acquisition of Alliant Capital.

When is the refinancing of Walker & Dunlop's loan expected to close?

The refinancing transaction is anticipated to close in November 2021.

What will the proceeds from Walker & Dunlop's loan refinancing be used for?

The proceeds will be used to repay the existing senior secured term loan and fund the acquisition of Alliant Capital.

What ratings is Walker & Dunlop expecting for their new loan?

Walker & Dunlop expects to receive ratings from Standard & Poor's and Moody's Investors Services related to the loan transaction.