O’Melveny provides counsel to Citibank on $100 million revolving credit facility for The RMR Group

O’Melveny provided legal advice to Citibank for a new US$100 million Revolving Credit Facility for The RMR Group. The deal was made public on January 22, with an initial maturity date set for January 22, 2028, and the possibility of a one-year extension at RMR’s discretion. This credit facility, which is secured by the majority of RMR’s assets, is intended for general corporate use.

An influential U.S. alternative asset management company, The RMR Group stands out for its focus on commercial real estate (CRE) and related activities. In this transaction, the O’Melveny team, guided by Malcolm Montgomery and Lance Levine, played a crucial role in ensuring its success.

The RMR Group, listed on NASDAQ under the symbol RMR, has introduced a new $100 million revolving credit facility as part of its efforts to enhance its financial flexibility, especially in private capital ventures. The previous arrangement comes with an option to extend the credit facility’s duration for an extra year, subject to the payment of additional charges and the satisfaction of customary terms.

With interest on borrowed amounts calculated based on SOFR plus a margin of 2.25% per year, this credit facility provides the RMR Group with financial room to maneuver as they seek to expand their private capital initiatives, as articulated by Matthew Jordan, the firm’s Executive Vice President and Chief Financial Officer. This move aligns with RMR’s strategic vision to push forward in its private capital endeavors, including the acquisition of a residential platform boasting more than $5 billion in assets under management and the commencement of a private capital residential portfolio, with an initial multifamily investment of $70 million.

As part of its plans to broaden its private capital sector, RMR has established a private capital debt vehicle with aggregate loan commitments of $67 million. The administrative and collateral agent for the new credit facility is Citibank, N.A., while the Joint Lead Arrangers include Citibank, N.A., Bank of America, N.A., and PNC Bank, National Association.

The RMR Group, with headquarters in Newton, MA, has built a reputation for its expertise in commercial real estate (CRE) and related fields, managing a substantial portfolio of assets across the country. With over three decades of experience in buying, selling, financing, and operating CRE, RMR commands a team of over 1,000 real estate professionals in more than 35 national offices, handling assets valued at nearly $41 billion. Their commitment to delivering exceptional outcomes is evident in their track record and dedication to providing outstanding legal services.