Ladder Capital, a leading diversified commercial real estate finance platform, recently closed and subsequently upsized a revolving credit facility with commitments of $850 million. The Credit Facility has an “accordion” feature under which the Company may further increase the total borrowing availability to up to $1.25 billion. The Credit Facility replaced Ladder’s prior $324 million revolving credit facility, which had no balance drawn at the time the Credit Facility closed.
The Credit Facility, which more than doubled Ladder’s existing revolving credit facility at a significantly lower cost of funds, has a maturity date of December 20, 2028, and up to two 6-month extensions thereafter at the Company’s option. The larger Credit Facility is expected to further enhance the liquidity and flexibility of the Company’s balance sheet. Without changing any commitments, the agreement governing the Credit Facility will be automatically replaced by an unsecured investment grade agreement if certain debt instruments of the Company receive investment grade ratings from two rating agencies. The margins for borrowings under the Credit Facility are tighter than that of Ladder’s prior revolving credit facility and further adjust based on the Company’s credit rating. Ladder is currently rated just one notch below investment grade from Moody’s (Ba1) and Fitch (BB+), with a positive outlook from both agencies. S&P rates Ladder at BB.
A total of 10 lenders participated in the Credit Facility. JPMorgan Chase Bank is the Administrative Agent and Collateral Agent for the Credit Facility, and JPMorgan, Wells Fargo Securities, Bank of America, M&T Bank and Société Generale are acting as Joint Bookrunners and Joint Lead Arrangers. Barclays Bank PLC, Citibank, Raymond James Bank, and U.S. Bank are acting as Joint Lead Arrangers, and along with Wells Fargo Bank, Bank of America, M&T Bank and Société Generale are acting as Syndication Agents. Deutsche Bank AG New York Branch is acting as Documentation Agent.
“We are pleased to see our strategic plans coming together. Upsizing our revolving credit facility is a crucial step as we continue on our path toward potential investment grade ratings,” said Brian Harris, Ladder’s Chief Executive Officer. “The success of this transaction reflects our strong relationships with financial partners, our differentiated approach to financing, and our commitment to building enduring value through a commercial real estate finance platform grounded in stability, discipline, and long-term resilience.”