The loan, known formally as the Second Incremental Secured Facility, matures on Nov. 28, 2017. It is being used to increase liquidity and to fund the working capital requirements of Walter’s origination business.
There are two interest rate options under the agreement for the loan; these are exercisable at Walter’s option. The first calls for a floating rate of Libor plus 450 basis points with a Libor floor of 125 bps, or there is an alternative base rate plus 350 bps. Interest is payable at the company’s option of one, two, three or six months but the option must be exercised quarterly.
The loan has four lenders. Credit Suisse AG is the administrative agent and it lent $58.5 million. Morgan Stanley Senior Funding is lending $53 million; Barclays Bank, $50.9 million and Bank of America, $37.6 million, an attachment to the 8-k said.
