Narrative
Full Description
Project narrative
On February 19, 2021, financial close was reached on a deal in which a syndicate of banks—including China CITIC Bank International Limited, New York Branch—entered into a syndicated loan agreement with Broadmark Realty Capital Inc., a Maryland-based real estate investment trust (REIT). The loan's maturity is three years, and the interest rate was either LIBOR plus an applicable margin or Prime Rate plus an applicable margin. It was later revealed that the loan used the Prime Rate option. The use of proceeds was for general corporate purposes, including refinancing existing obligations and supporting the company's real estate financing operations. While China CITIC Bank International Limited contributed to this loan, the following lenders also participated: JPMorgan Chase Bank, N.A., as Administrative Agent and Lender; Barclays Bank PLC; VNB New York, LLC; and Axos Bank.
Staff comments
1/ Broadmark Realty Capital Inc. is a Maryland-based real estate investment trust (REIT) specializing in short-term, first-position loans secured by real estate. The company focuses on originating and managing loans for residential and commercial real estate investments. 2 AidData estimates the interest rate by adding the Prime Rate, actual interest rate charged to borrowers published by the Wall Street Journal in February 2021 (3.25%) to the applicable margin 2.75%. The total interest rate for the loan is the sum of these two components 6%. 3. The individual contributions of the 5 lenders to this $135 million USD syndicated RCF are unknown. For the time being, AidData has estimated the contribution of China CITIC Bank by assuming that each lender contributed an equal amount ($27,000,000 USD) to the loan syndicate. 4. The loan agreement can be accessed at https://www.dropbox.com/scl/fi/tf8gk3kityovtbbsbd69t/sec.gov_Archives_edgar_data_1784797_000155837021001809_brmk-20210219xex10d1.htm-_Toc64479692.pdf?rlkey=cz5ljhcapiy2bn5u2avbin2m0&st=xsrsum2g&dl=0