AFC Gamma, Inc. Prices Offering of 5.750% Senior Notes Due 2027
October 29, 2021 at 01:33 am IST
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AFC Gamma, Inc. announced that it priced an offering (the ?Offering?) of $100 million aggregate principal amount of 5.750% Senior Notes due 2027 (the ?Notes?) to qualified institutional buyers pursuant to Rule 144A and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act of 1933, as amended (the ?Securities Act?). The Notes mature on May 1, 2027. Interest on the Notes is payable semi-annually in arrears on May 1 and November 1 of each year, with the first payment on May 1, 2022. The offering is expected to close on November 3, 2021, subject to customary closing conditions. The Notes will be AFC Gamma?s general unsecured and unsubordinated obligations, will be fully and unconditionally guaranteed by each of AFC Gamma's existing and future subsidiaries other than certain immaterial subsidiaries, and will rank equally in right of payment with all of AFC Gamma?s existing and future senior unsecured indebtedness and senior in right of payment to any of AFC Gamma?s subordinated indebtedness. The Notes will not be guaranteed by AFC Gamma's subsidiary on the issue date of the Notes.
AFC Gamma, Inc. is an institutional lender to the commercial real estate sector. The Company primarily originates, structures, underwrites, invests in and manages senior secured loans and other types of commercial real estate loans and debt securities, with a specialization in loans to cannabis industry operators in states that have legalized medical and/or adult-use cannabis. The Companyâs objective is to provide attractive risk-adjusted returns over time through cash distributions and capital appreciation primarily by providing loans to real estate developers and state-law compliant cannabis companies. The loans it originates are primarily structured as senior loans secured by real estate, equipment, value associated with licenses (where applicable) and/or other assets of the loan parties to the extent permitted by applicable laws and the regulations governing such loan parties. The Company targets investing strategically across multiple real estate sectors.