Replaces $75 Million Credit Facility from AFC Finance
WEST PALM BEACH, Fla., May 02, 2022 (GLOBE NEWSWIRE) — AFC Gamma, Inc. (NASDAQ:AFCG) (“AFC Gamma”) today announced that it has entered into a senior secured revolving credit facility (“Credit Facility”) with $60 million of current commitments from two FDIC-insured banks and the ability to increase the facility to $100 million. The two banks, one of which is East West Bank, have over $70 billion of assets in the aggregate. AFC Gamma intends to use the available capital from the Credit Facility to fund unfunded commitments under loans to its existing borrowers, to originate and participate in commercial loans to cannabis operators that are consistent with its investment strategy, and for working capital and other general corporate purposes.
The Credit Facility has a maturity date of April 29, 2025 and will bear interest at a floating rate of Prime + 0.50%, subject to a Prime floor of 4.00%. Upon closing the Credit Facility, AFC Gamma terminated its prior $75 million revolver that was provided by AFC Finance, LLC, an affiliate of Leonard Tannenbaum, AFC Gamma’s Chief Executive Officer.
“We are excited to have entered into our $60 million senior secured revolving credit facility led by two FDIC-insured banks with over $70 billion in assets. We are pleased to have begun our relationship with these two banks and look forward to receiving additional commitments under the credit facility over time,” said Brett Kaufman, AFC Gamma’s Chief Financial Officer.
About AFC Gamma
AFC Gamma, Inc. (NASDAQ:AFCG) is an institutional lender that provides a range of lending solutions to established operators in the cannabis industry. AFC Gamma originates, structures and underwrites senior secured loans and other types of financing to operators in states that have legalized medicinal and/or adult-use cannabis. AFC Gamma’s senior management team has over 100 years of combined experience in investment management and disciplined credit investing across a range of economic cycles.
