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TORONTO, Oct. 1, 2012 (GLOBE NEWSWIRE) -- Atrium Mortgage Investment Corporation (TSX:AI) ("Atrium") announced today that it has successfully entered into a new revolving operating credit facility, increasing the maximum availability to $50 million, from $40 million previously, increasing to $75 million by way of a bulge facility during the period commencing on September 25, 2012 and ending six months thereafter.
The revolving operating credit facility matures on August 31, 2013, except for amounts borrowed under the bulge facility, which mature six months after September 25, 2012. Advances under the revolving operating credit facility are subject to certain conditions of drawdown, and may be made by way of Canadian prime rate loans, bankers' acceptances or letters of credit. The amount which may be drawn under the revolving operating credit facility is limited to the lesser of: (i) $50 million (subject to increase to $75 million when the bulge facility is available); (ii) 45% (or 50% when the bulge facility is available) of Atrium's shareholders' equity; and (iii) 50% of the value of qualified first mortgages. The maximum available by way of letters of credit is $2 million.
Mr. Robert Goodall, President and CEO, stated, "The increase in our revolving credit facility positions Atrium to build shareholder value by continuing our focused program of investing in quality mortgages."
As a mortgage investment corporation, Atrium is a non-bank provider of residential and commercial real estate finance. Atrium lends in major urban centres in Canada where the stability and liquidity of real estate are at the highest levels. Canadian Mortgage Capital Corporation ("CMCC") is responsible for originating, underwriting, servicing and syndicating Atrium's mortgage loans. CMCC has been Atrium's exclusive manager since Atrium's formation and has grown Atrium's business to a mortgage portfolio of approximately $180 million. CMCC has been in the business of originating and underwriting mortgage loans for over 19 years and servicing mortgage loans for over 13 years.
CONTACT: Atrium Mortgage Investment Corporation
Robert G. Goodall
President and Chief Executive Officer