RMR Real Estate Income Fund Enters Into New $50M Credit Facility
RMR Real Estate Income Fund (NYSE: RIF) today announced that it has entered into a new $50 million revolving credit facility with BNP Paribas Prime Brokerage, Inc. (“BNP”). The new credit facility bears interest at LIBOR plus 95 basis points and it has a 270 day rolling term that resets daily. The new credit facility requires RIF to pledge portfolio securities as collateral up to 250% of the loan balance outstanding. The new credit facility also permits BNP to lend portfolio securities pledged by RIF up to the loan balance outstanding, and RIF will receive a portion of the revenue earned in connection with lending its portfolio securities.
RIF expects to use the new credit facility to repay amounts outstanding under, and terminate, its existing $10 million revolving credit facility, to fund additional investments and for additional financial flexibility in managing its investment portfolio.
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