Terra Property Trust Extends Credit Line

The company amended its credit agreement with Western Alliance Bank, extending maturity and adjusting obligations.

February 07, 2025

Strategic Adjustment to Credit Agreement

Terra Property Trust, Inc., a real estate investment firm focused on credit-backed assets, has amended its revolving credit facility with Western Alliance Bank. The adjustment, formalized through a Seventh Amendment to its loan documents, extends the maturity date of the credit facility to June 30, 2025. Additionally, the amendment imposes an extra monthly principal repayment requirement.

The modification ensures that Terra Property Trust maintains liquidity while continuing to align its financial structure with its strategic goals. By securing additional time on its revolving line of credit, the company reinforces its ability to manage capital efficiently in response to market conditions.

Details of the Amended Agreement

The revised agreement, executed on February 4, 2025, involves Terra Property Trust and its wholly owned subsidiary, Terra Mortgage Portfolio II, LLC. The lender, Western Alliance Bank, remains a key financial partner in this arrangement. While the filing provides an overview of the amendment, more details are expected in the company’s upcoming quarterly report covering the period ending March 31, 2025.

Positioning for Long-Term Stability

As an emerging growth company under SEC definitions, Terra Property Trust has elected to follow an extended transition period for new accounting standard compliance. This status allows the firm greater flexibility in adapting to regulatory changes while focusing on capital management.

In addition to its financing developments, Terra Property Trust continues to trade its 6.00% notes due in 2026 under the ticker symbol TPTA on the New York Stock Exchange. The credit facility adjustment underscores the company's proactive approach to financial planning, reinforcing stability as it manages its portfolio of real estate credit investments.

Looking Ahead

By extending its credit agreement and introducing additional principal repayments, Terra Property Trust signals confidence in its operational and financial strategy. The move provides clarity on its near-term obligations while ensuring sustained financial flexibility. Investors and stakeholders will be watching for further disclosures in the forthcoming quarterly report to assess the broader impact of this amendment.