Sunrise Realty Trust, Inc. (NASDAQ:SUNS) has entered into a $50 million unsecured revolving credit agreement with SRT Finance LLC, marking a significant financial development for the real estate investment trust. The agreement, effective as of today, was announced in a recent SEC filing.
The credit facility, which is unsecured, allows Sunrise Realty Trust to borrow, repay, and redraw funds up to the total commitment amount. The interest rate on the facility is set at 1 month SOFR with a 3.0% floor, plus a margin of 2.75%. The agreement is scheduled to mature on December 31, 2025.
SRT Finance LLC, serving as the agent and lender for the credit facility, has close ties to the company's leadership. The lender is indirectly owned by Leonard M. Tannenbaum, Executive Chairman of Sunrise Realty Trust's Board of Directors, Robyn Tannenbaum, President of the company, and their family members and associated family trusts.
This financial move provides the company with a flexible financing option to manage its cash flow and investments. The credit agreement details were made public through an 8-K filing with the Securities and Exchange Commission, which includes the full terms of the agreement.
As an emerging growth company, Sunrise Realty Trust has the option to opt out of extended transition periods for complying with new or revised financial accounting standards, though it has not indicated whether it has chosen to exercise this right.
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