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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