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Resource America, Inc. Reports Extension and Improvement in Revolving Credit Facility Terms

^{Published on 2009-11-09 08:26:46 - Market Wire}
 

PHILADELPHIA, PA--(Marketwire - November 9, 2009) - Resource America, Inc. (NASDAQ: [ REXI ]) (the "Company") reported that on November 6, 2009 it extended until October 15, 2011 the maturity of its revolving credit facility (the "Facility") with TD Bank. In addition to the term extension, the amended Facility provides additional flexibility and reduced debt costs to the Company resulting from (i) a substantial reduction of the interest rate spread from the prime rate plus 5% to the prime rate plus 3%; (ii) reduction of the minimum interest rate from 10% to 7%; (iii) reinstatement of the Company's option to choose a Libor based loan at a rate of Libor plus 4.5% (with a minimum Libor based rate of 7.5%); and (iv) a revision of the definition of "interest expense" to exclude non-cash items that are otherwise recorded as interest expense under Generally Accepted Accounting Principles.

The Company simultaneously lowered the maximum amount of the Facility to $20 million, which reduction was funded by a portion of the proceeds of the Company's $18.8 million private placement of senior notes that was completed on October 8, 2009. Also, with the reduction in the Facility, U.S. Bank has been removed as a lender under the Facility so that currently TD Bank is the sole lender.

Jonathan Cohen, President and Chief Executive Officer of the Company, said, "We are very pleased with the amendment to our revolving credit facility and the associated flexibility and cost savings. This accomplishment allows us to focus on our businesses which continue to see great opportunity. Our relationship with TD Bank and its predecessors is longstanding and we look forward to a long and fruitful relationship with TD Bank. We continue to focus on reducing leverage and costs in an efficient manner, and this amendment is very helpful in accomplishing those goals."

Resource America, Inc. is a specialized asset management company that uses industry specific expertise to generate and administer investment opportunities for its own account and for outside investors in the commercial finance, real estate and financial fund management sectors. For more information please visit our website at [ www.resourceamerica.com ] or contact Marketing and Investor Relations at [ pkamdar@resourceamerica.com ].

Certain matters discussed within this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include financial performance, regulatory changes, changes in local or national economic conditions and other risks detailed from time to time in the Company's reports filed with the SEC, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K. The Company undertakes no obligation to update or revise any forward looking statement to reflect new or changing information or events.

 For more information: Resource America, Inc. [ www.resourceamerica.com ][ pkamdar@resourceamerica.com ]