Chicago Atlantic Real Estate Finance Announces $50 Million Loan Agreement with Financial Institutions

Chicago Atlantic Real Estate Finance, Inc. disclosed in a recent 8-K filing with the Securities and Exchange Commission that on October 18, 2024, the company entered into a Loan Agreement. The agreement was made between Chicago Atlantic Real Estate Finance, Inc., a Maryland corporation, and various financial institutions as lenders, for an aggregate commitment of $50,000,000 in unsecured notes.

The Loan Agreement spans a four-year term, concluding on October 18, 2028. It carries an interest rate of 9.00% annually, with a provision that allows for an increase of 50 basis points per annum if specified conditions aren’t met per the terms of the agreement. Additionally, the Company paid a 1.50% upfront fee, which is deemed fully earned and non-refundable.

Chicago Atlantic Real Estate Finance, Inc. retains the prerogative to prepay the loans from all lenders at any time without incurring penalties. However, if prepayment occurs on or before the second anniversary of the Closing Date, a prepayment premium is applicable. This premium amounts to 3.00% of the prepaid sum if made within the initial year and 2.00% if executed between the first and second anniversaries.

Under the Loan Agreement, the Company is subject to customary representations, warranties, and covenants befitting this type of financial transaction. While the aforementioned summary captures key elements of the agreement, readers are encouraged to refer to the complete document provided as Exhibit 10.1 within the Form 8-K filing for more intricate details.

Subsequent to the agreement, Chicago Atlantic Real Estate Finance, Inc. issued a press release on October 23, 2024, to publicize the successful closing of the Loan Agreement. The press release can be accessed in full as Exhibit 99.1 in the same Form 8-K filing.

This disclosure falls under Item 2.03, indicating the creation of a direct financial obligation by the Company as mentioned in Item 1.01 of the current report. The filing further notes the provision of financial statements and relevant exhibits associated with the Loan Agreement.

The Company’s Form 8-K submission includes detailed information about the Loan Agreement executed, shedding light on the strategic financial decision undertaken by Chicago Atlantic Real Estate Finance, Inc. as part of its operational initiatives.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Chicago Atlantic Real Estate Finance’s 8K filing here.

Chicago Atlantic Real Estate Finance Company Profile

Chicago Atlantic Real Estate Finance, Inc operates as a commercial real estate finance company in the United States. The company engages in originating, structuring, and investing in first mortgage loans and alternative structured financings secured by commercial real estate properties. Its portfolio primarily includes offers senior loans to state-licensed operators in the cannabis industry.