PHILADELPHIA, PA--(Marketwire - November 9, 2009) - Resource America, Inc. (
NASDAQ:
REXI) (the
"Company") reported that on November 6, 2009 it extended until October 15,
2011 the maturity of its revolving credit facility (the "Facility") with TD
Bank. In addition to the term extension, the amended Facility provides
additional flexibility and reduced debt costs to the Company resulting from
(i) a substantial reduction of the interest rate spread from the prime rate
plus 5% to the prime rate plus 3%; (ii) reduction of the minimum interest
rate from 10% to 7%; (iii) reinstatement of the Company's option to choose
a Libor based loan at a rate of Libor plus 4.5% (with a minimum Libor based
rate of 7.5%); and (iv) a revision of the definition of "interest expense"
to exclude non-cash items that are otherwise recorded as interest expense
under Generally Accepted Accounting Principles.
The Company simultaneously lowered the maximum amount of the Facility to
$20 million, which reduction was funded by a portion of the proceeds of the
Company's $18.8 million private placement of senior notes that was
completed on October 8, 2009. Also, with the reduction in the Facility,
U.S. Bank has been removed as a lender under the Facility so that
currently TD Bank is the sole lender.
Jonathan Cohen, President and Chief Executive Officer of the Company, said,
"We are very pleased with the amendment to our revolving credit facility
and the associated flexibility and cost savings. This accomplishment
allows us to focus on our businesses which continue to see great
opportunity. Our relationship with TD Bank and its predecessors is
longstanding and we look forward to a long and fruitful relationship with
TD Bank. We continue to focus on reducing leverage and costs in an
efficient manner, and this amendment is very helpful in accomplishing those
goals."
Resource America, Inc. is a specialized asset management company that uses
industry specific expertise to generate and administer investment
opportunities for its own account and for outside investors in the
commercial finance, real estate and financial fund management sectors. For
more information please visit our website at
www.resourceamerica.com or
contact Marketing and Investor Relations at
pkamdar@resourceamerica.com.
Certain matters discussed within this press release are forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995. Although the Company believes the expectations reflected in
such forward-looking statements are based on reasonable assumptions, it can
give no assurance that its expectations will be attained. Factors that
could cause actual results to differ materially from expectations include
financial performance, regulatory changes, changes in local or national
economic conditions and other risks detailed from time to time in the
Company's reports filed with the SEC, including quarterly reports on Form
10-Q, reports on Form 8-K and annual reports on Form 10-K. The Company
undertakes no obligation to update or revise any forward looking statement
to reflect new or changing information or events.
For more information:
Resource America, Inc.
www.resourceamerica.com
pkamdar@resourceamerica.com
Contact Information: CONTACT:
THOMAS C. ELLIOTT
SENIOR VICE PRESIDENT-FINANCE AND OPERATIONS
RESOURCE AMERICA, INC.
ONE CRESCENT DRIVE, SUITE 203
PHILADELPHIA, PA 19112
215/546-5005
215/546-4785 (fax)