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Sunrise Realty Trust secures $75 million credit line

EditorEmilio Ghigini
Published 10/12/2024, 07:30 pm
SUNS
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Sunrise Realty Trust, Inc. (NASDAQ:SUNS), a real estate investment trust with a market capitalization of $97 million, has entered into a new credit agreement providing a $75 million unsecured revolving credit facility.

The agreement, effective Monday, was established with SRT Finance LLC, a lender and agent indirectly owned by key executives of the company and their family members. According to InvestingPro data, the company maintains strong liquidity with a current ratio exceeding 3,000, indicating robust financial health.

The credit facility, which allows the company to borrow, repay, and re-borrow funds, carries an 8% annual interest rate. It is set to mature on May 31, 2028, or earlier upon the closing of any refinancing indebtedness of at least $75 million. The company's stock has shown strong momentum, with a 29.3% price return over the past six months, though current analysis suggests the stock may be trading above its Fair Value.

Starting January 1, 2026, Sunrise Realty Trust will be obligated to pay an annual fee of 1% of the aggregate commitments to the lenders. This fee is payable at the beginning of each calendar year, with the fee for the year 2028 being prorated based on the number of days from January 1, 2028, to May 31, 2028.

The credit agreement was detailed in an 8-K filing with the Securities and Exchange Commission, which also includes the company's commitment to pay the aforementioned annual fee. The terms and conditions of the credit agreement are outlined in Exhibit 10.1 of the filing, which is incorporated by reference.

The establishment of this credit facility represents a significant financial move for Sunrise Realty Trust, providing them with flexible capital for their operations. The company's executives involved in the agreement include Leonard M. Tannenbaum, Executive Chairman of the Board, and Robyn Tannenbaum, President of the company.

This financial development comes amid Sunrise Realty Trust's ongoing efforts to manage its capital structure and support its growth initiatives. The company maintains an attractive dividend yield of ~12%, making it a notable income-generating investment. The information in this article is based on a press release statement. For more detailed analysis and additional insights, including six more exclusive ProTips, visit InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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