Amendment to Tangible Net Worth Covenant
US Masters Residential Property Fund
Key points
- Tangible Net Worth Covenant reduced to US$104.5 million from US$250 million
- Reduction pro rata with any decrease in outstanding loan principal
- Amendment executed on 3 May 2025
Full summary
US Masters Residential Property Group (ASX: URF) has announced that it has executed an amendment to the Tangible Net Worth (TNW) Covenant contained in its loan agreement with Global Atlantic. This amendment was mentioned in the Chair's address to securityholders at the Group's general meeting held on 3 April 2025. The Board of Directors is pleased to confirm that the amendment has been executed, effective 3 May 2025 (AEST). As a result of the amendment, the TNW Covenant will be reduced pro rata simultaneously with any reduction in the outstanding principal balance of the loan. As at the date of this amendment, the TNW Covenant is US$104.5 million, reduced from US$250 million prior to the amendment being executed. The Group's sales strategy has necessitated this change to the TNW Covenant, providing greater flexibility as the Group continues to execute its plans.