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RWF debt facility secures greater capabilities

Yellow Brick Road’s joint venture with Magnetar, Resi Wholesale Funding, has secured a limit increase and availability extension of its debt facility.

Resi Wholesale Funding has secured a $130-million limit increase and extended the availability period for the debt facility provided to the trustee of the RWF Warehouse Trust No.1.

The limit has risen from $120 million to $250 million, and the availability now runs to 21 February 2022.

The limit increase is subject to a number of conditions, including securing the required amount of mezzanine funding in accordance with terms of the new limit.

A number of eligibility criteria relating to origination of mortgage loans have also reportedly been agreed, though details of these have not yet been made public. However, YBR said they would “enable RWF to strengthen its product offering and continue to grow its business”.

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Other than the changes described, the terms remain the same as in the existing facility. 

Mark Bouris, the executive chairman of Yellow Brick Road, said: “This is great news for YBR and its partner Magnetar, and will put our distribution networks in a better position to compete in this market.” 

The facility was officially launched in February last year, after Yellow Brick Road and an affiliate of global alternative asset manager Magnetar Capital (Magnetar) entered into a joint venture to form RWF, the residential mortgage-backed securities (RMBS) securitisation business for which YBR received credit approval for a $120-million warehouse facility in 2019.

[Related: YBR reports loan book growth]

RWF debt facility secures greater capabilities
RWF debt facility secures greater capabilities

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>Resi Wholesale Funding has secured a $130-million limit increase and extended the availability period for the debt facility provided to the trustee of the RWF Warehouse Trust No.1.

The limit has risen from $120 million to $250 million, and the availability now runs to 21 February 2022.

The limit increase is subject to a number of conditions, including securing the required amount of mezzanine funding in accordance with terms of the new limit.

A number of eligibility criteria relating to origination of mortgage loans have also reportedly been agreed, though details of these have not yet been made public. However, YBR said they would “enable RWF to strengthen its product offering and continue to grow its business”.

Other than the changes described, the terms remain the same as in the existing facility. 

Mark Bouris, the executive chairman of Yellow Brick Road, said: “This is great news for YBR and its partner Magnetar, and will put our distribution networks in a better position to compete in this market.” 

The facility was officially launched in February last year, after Yellow Brick Road and an affiliate of global alternative asset manager Magnetar Capital (Magnetar) entered into a joint venture to form RWF, the residential mortgage-backed securities (RMBS) securitisation business for which YBR received credit approval for a $120-million warehouse facility in 2019.

[Related: YBR reports loan book growth]

RWF debt facility secures greater capabilities
RWF debt facility secures greater capabilities
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