NorthStar Realty Finance Corp., a real estate investment trust that originates commercial debt, has fully repaid and extinguished its $304 million credit facility with Wells Fargo NA.
NorthStar paid $208 million of cash and it is granting Wells Fargo the right to receive 40% of any principal proceeds paid to NorthStar on its euro 72.5 million participation in a mezzanine loan that is collateralized by a German retail portfolio.
It is also granting Wells Fargo two million warrants to acquire two million shares of NorthStar's common stock for $7.60 per share.
Additionally, as part of the repayment, Wells Fargo has agreed to use commercially reasonable efforts to provide NorthStar and/or its affiliates a new secured credit facility, which is expected to be $200 million.
Following the repayment of the credit facility, NorthStar's unrestricted cash balance is expected to be approximately $100 million.
