NEWTON, Mass.–The RMR Group (Nasdaq: RMR) announced that it has entered into a new $100 million senior secured revolving credit facility.
The initial maturity date of the new credit facility is January 22, 2028, and it includes a one-year extension at RMR’s option, subject to payment of extension fees and satisfaction of other customary conditions. Amounts drawn under the new credit facility bear interest at a variable rate based on SOFR plus a margin of 2.25% per annum.
Undrawn amounts under the new credit facility incur a fee of 0.50% per annum. The new credit facility is secured by substantially all of the assets of RMR and will be used for general corporate purposes.
Matthew Jordan, Executive Vice President and Chief Financial Officer of RMR, made the following statement:
“We appreciate the support of our bank group and their commitments to RMR. While RMR generates robust cash flow and has ample cash on hand to fund potential investments in the near term, this credit facility provides us with greater financial flexibility as we continue to invest in our private capital initiatives and position RMR to capitalize on long term growth opportunities.”
As part of its strategic initiative to expand its private capital business, over the past year RMR acquired a residential platform with private capital assets under management of more than $5 billion and began to seed a private capital residential portfolio, closing its first multifamily investment for a purchase price of $70 million. Additionally, RMR created a private capital debt vehicle, currently consisting of $67 million in aggregate loan commitments.
Citibank, N.A. is the Administrative and Collateral Agent for the new credit facility. Citibank, N.A., Bank of America, N.A. and PNC Bank, National Association are the Joint Lead Arrangers.
