Business Context and Reporting Period
This Form 8-K Current Report was filed by Colony Credit Real Estate, Inc. (CLNC) on June 16, 2020. The filing discloses a material definitive agreement entered into by CLNC Credit 6, LLC, an indirect subsidiary of the registrant, with Goldman Sachs Bank USA.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, margin, or liquidity figures. The financial significance of the filing relates to the restructuring of a debt facility:
- Debt Facility: Master Repurchase Agreement with Goldman Sachs Bank USA.
- Guarantee Liability: The maximum liability under the reaffirmed Guaranty is capped at 25% of the aggregate repurchase price of all purchased assets under the Repurchase Agreement.
Material Changes Versus Prior Period
The filing details amendments to an existing Master Repurchase Agreement originally dated June 19, 2018:
- Maturity Extension: The maturity date was extended from June 19, 2020, to June 19, 2021.
- Interest Rate Benchmark: The agreement was amended to convert the benchmark floating rate from LIBOR to an alternate index rate upon the occurrence of certain transition events.
- Guaranty Reaffirmation: Credit RE Operating Company, LLC entered into a Reaffirmation Agreement to ratify and reaffirm its obligations under the existing Guaranty.
Guidance, Outlook, and Risks
The filing contains no management guidance, outlook, or specific risk factors beyond the standard disclosure that the summary is qualified by reference to the full text of the Amendment and Reaffirmation Agreement filed as Exhibits 10.1 and 10.2. The primary operational change is the transition away from the LIBOR benchmark, reflecting broader market shifts in interest rate indices.
Key Facts for Investor Verification
- Verify the specific terms of the "alternate index rate" replacing LIBOR in the amended Repurchase Agreement.
- Confirm the aggregate repurchase price of assets under the agreement to calculate the maximum potential liability of the 25% guaranty cap.
- Review the full text of the First Amendment (Exhibit 10.1) and Reaffirmation Agreement (Exhibit 10.2) for any additional covenants or conditions not summarized in the 8-K.