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.
Potential Implications
Company Performance
- 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.
Stock Price
- 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.