DALLAS, June 13, 2011 /PRNewswire/ -- PMC Commercial Trust (the "Company") (NYSE Amex: PCC) today announced the successful completion of an amendment and extension of its existing $30 million revolving credit facility that results in more favorable pricing and extends its maturity.
The amendment provides for automatic increases in the borrowing availability under the facility beginning on January 1, 2012 to $35 million and on January 1, 2013 to $40 million, subject to certain conditions being met and also extends the facility's maturity date to June 30, 2014. The amendment reduces the interest rate under the revolving credit facility. Borrowings will continue to bear interest at a floating rate plus an applicable margin. The applicable margin for LIBOR borrowings decreased to 2.00% from 3.00% and the applicable margin for CB Floating Rate (typically the prime rate) borrowings decreased to -0.50% from 0.00%. The amendment also results in an unsecured facility with less restrictive financial covenants.
Lance B. Rosemore, Chairman of the Board and Chief Executive Officer, stated "We are very pleased with the amendment and extension of our credit facility. We are confident that the reduced interest rate and extended term of our credit facility will strengthen our profitability by reducing the cost of our capital and allow us to continue to pursue our SBA 7(a) lending strategy. The extended maturity to June 2014 allows the Company flexibility that we did not have previously."
Additional information regarding today's announcement is included in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on June 10, 2011 which is also available on our website.Certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the Company "expects," "anticipates," "will" or words of similar import. Similarly, statements that described the Company's future plans, objectives or goals are also forward-looking statements. Such forward-looking statements can be subject to certain risks and uncertainties, including the financial performance of the Company, real estate conditions and market valuation of its shares, which could cause actual results to differ materially from those currently anticipated. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be attained. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. www.pmctrust.com SOURCE PMC Commercial Trust
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Check Out Our Best Services for Investors
Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.