Terra Property Trust, Inc., a Maryland-based real estate investment trust, has modified its existing revolving credit facility with Western Alliance (NYSE:WAL) Bank, according to a recent 8-K filing with the Securities and Exchange Commission.
On Wednesday, the company entered into a Sixth Amendment to Loan Documents that, among other changes, extends the maturity date of the facility to December 31, 2024.
The amendment also ceases additional revolving borrowings, reduces the company's minimum net worth requirement for future quarterly assessments, and introduces a new minimum liquidity covenant. Furthermore, an interest reserve account will be established, and the previous minimum profitability and maximum global leverage covenants have been removed from the agreement.
These adjustments come as Terra Property Trust works to align its financial strategies with its operational goals. The revised credit terms are designed to provide the company with greater flexibility in managing its finances while continuing to meet its obligations to Western Alliance Bank.
The Sixth Amendment will be filed in detail as part of Terra Property Trust's Quarterly Report on Form 10-Q for the period ending June 30, 2024. The company's shares are traded on the New York Stock Exchange under the ticker symbol TPTA, which includes its 6.00% Notes due 2026.
Terra Property Trust has not disclosed any further financial details regarding the amendments, such as interest rates or specific financial covenants. This news is strictly based on the press release statement and the SEC filing made by the company.
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