The RMR Group Secures $100 Million Revolving Credit Facility

On January 22, 2025, The RMR Group Inc. (NASDAQ: RMR) closed a significant credit agreement with Citibank, N.A., enhancing its financial position with a new $100 million senior secured revolving credit facility. This strategic move aims to bolster financial flexibility for the company’s investments in private capital initiatives and general corporate purposes.

The 3-year Revolving Credit Facility features variable interest rates tied to the Secured Overnight Financing Rate (SOFR), with a margin of 2.25% per annum. Alternatively, a base reference rate option is available, equal to the federal funds rate plus 0.50% or other specified rates. The Borrower will pay agency fees and commitment fees on the unused portion.

To secure this agreement, The RMR Group, its subsidiaries, and the Collateral Agent entered into a security agreement, offering a security interest in most assets, with exceptions. The Credit Agreement encompasses customary representations, warranties, and various covenants to ensure compliance and management of financial ratios.

Included in the agreement are financial covenants, such as a maximum leverage ratio of 2.0:1.0, minimum interest coverage ratio of 3.0:1.0, and management fee-generating assets ratio requirements. Standard default conditions, upon occurrence, could lead to facility termination and accelerated payment obligations.

Through this credit facility, The RMR Group aims to secure ongoing financing support for operational initiatives and potential investments in private capital ventures. This move aligns with the company’s strategy to expand its private capital business, showcasing notable recent acquisitions and seeding of investment portfolios.

Citibank, N.A., alongside Bank of America, N.A., and PNC Bank, National Association, has facilitated this credit facility as Joint Lead Arrangers. The RMR Group continues to focus on commercial real estate and related businesses, managing assets and leveraging its institutional expertise for long-term growth opportunities.

Investors should note that forward-looking statements in this press release are subject to risks and uncertainties, as disclosed by The RMR Group in periodic filings with the SEC. Despite robust cash flow projections, actual outcomes may differ due to various factors, emphasizing the importance of ongoing monitoring and prudent decision-making.

For further information, interested parties can refer to the complete text of the Credit Agreement filed with the SEC, underscoring The RMR Group’s commitment to transparency and regulatory compliance with financial disclosures.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read The RMR Group’s 8K filing here.

The RMR Group Company Profile

The RMR Group Inc, through its subsidiary, The RMR Group LLC, provides asset management services in the United States. The company offers management services to its four publicly traded real estate investment trusts, three real estate operating companies, and private capital vehicles. It also provides advisory services to publicly traded mortgage real estate investment trust.