InPoint Commercial Real Estate Income Inc, through its wholly owned subsidiary InPoint CS Loan LLC, entered into a master repurchase agreement with Column Financial Inc., as administrative agent.
The agreement provides up to $100.0 million in advances, subject to adjustment up to $250.0 million, which InPoint Commercial expects to use to finance the acquisition or origination of eligible loans.
The facility can be repaid as the company's assets are paid off and re-drawn as advances against new assets. Advances under the facility accrue interest at a per-annum rate equal to the London Inter Bank Offered Rate plus 2.25%. The initial maturity date of the facility is Feb. 15, 2019, with extensions at the option of InPoint CS Loan.
In connection with the agreement, InPoint Commercial entered into a guaranty dated Feb. 15, under which the company agreed to guarantee certain obligations of InPoint CS Loan.
The master repurchase agreement and the guaranty contain representations, warranties, covenants, conditions precedent to funding, events of default and indemnities, and the facility contains financial and other covenants applicable to InPoint CS Loan. In addition, the guaranty contains financial covenants that require the company to satisfy certain minimum net worth requirements.