Creation of a Direct Financial Obligation

Analyst Summary

Walker & Dunlop completed a $400 million offering of senior unsecured notes due in 2033 with an interest rate of 6.625%.
The company entered into a senior secured amended and restated credit agreement providing for a $450 million term loan and a $50 million revolving credit facility.
Proceeds from the notes and the term loan were used to refinance the prior term loan and for general corporate purposes.
The credit agreement includes covenants that restrict the company’s ability to incur debt, create liens, make investments, and engage in certain transactions.
The company amended its master repurchase agreement and warehousing agreement to permit WDLLC to guarantee the notes and enter into the guarantee and collateral agreement.

Refinancing activities may improve the company’s financial flexibility and reduce borrowing costs.
The new credit agreement and notes offering could impact the company’s future financial performance and ability to execute its strategic plans.

Successful refinancing and debt management could positively influence investor confidence and stock price.
Changes in debt levels and financial covenants may affect the company’s valuation and stock performance.