AFC Gamma, Inc. (NASDAQ:AFCG) has entered into a senior secured revolving 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 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 CEO.
