Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 2595

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 2595
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 enforcement actions or assertions of rights or remedies by Lender or any right in connection with any security for the loan, or failure on the part of Borrower to maintain status of each borrower as a single purpose entity as described in the Loan Agreement, to obtain consent before incurring certain additional indebtedness or liens encumbering any real property that is collateral under the loan, or to obtain consent for a transfer of or certain related transactions with respect to any real property that is collateral under the loan other than certain permitted transfers.

The Loan Agreement provides for a single initial advance of the loan in the amount of $750 million to Borrower on the closing date. Amounts outstanding under the Loan Agreement are due and payable on November 1, 2029. The Loan Agreement generally provides that the loan proceeds will be used for acquisitions, to repay and discharge existing loans related to owned properties, for working capital requirements related to the real property that is collateral under the loan, and for payments and deposits required under or pursuant to the terms of the Loan Agreement. The terms of the Loan Agreement allow the Company to convert to a Maryland corporation that will continue as a real estate investment trust, which the Company expects to complete in 2025.

Borrowings outstanding under the Loan Agreement are secured by mortgages on real property owned by one or more of the borrowers comprising Borrower and bear interest at approximately 4.32% with respect to approximately $358.4 million of initial principal thereunder, 4.66% with respect to approximately $58.9 million of initial principal thereunder, 5.00% with respect to approximately $46.3 million of initial principal thereunder, 5.67% with respect to approximately $97.4 million of initial principal thereunder, 6.71% with respect to approximately $113.5 million of initial principal thereunder, 7.90% with respect to approximately $38 million of initial principal thereunder and 10.28% with respect to approximately $37.5 million of initial principal thereunder. Borrowings outstanding under the Loan Agreement may be repaid from time to time on certain terms and conditions, including payment of administrative costs, expenses, exit fees, and interest for the period, as well as a spread maintenance payment in some circumstances.

The guaranteed obligations by the Company under the Loan Agreement are recourse obligations to the Company and each agreement contains representations and warranties, affirmative and negative covenants and events of default that the Company considers customary for an agreement of this type, including