Montfort Capital Corporation announced that its subsidiary, Brightpath Capital Corporation, has obtained a senior secured revolving credit facility of up to $200 million from Atalaya Capital Management LP. Initially committed to C$100 million, the facility allows expansion to $200 million with Atalaya's approval, over a 36-month term. Brightpath will use this facility to finance its portfolio and future loan originations.

Daniel Rosato of Atalaya praised Brightpath’s platform and business model in the Canadian mortgage market, supporting its growth ambitions. Blake Albright, CEO of Brightpath, expressed excitement about the partnership, aiming to leverage Atalaya’s global asset management reputation for business expansion in Canada.

The credit facility features a floating interest rate based on the Adjusted Daily Compounded CORRA, plus a credit spread, with bi-monthly interest payments starting April 2024. The facility's draw period ends in April 2027, with final maturity in April 2028.

Atalaya and its affiliates maintain an arm's length relationship with Montfort and Brightpath, with Montfort not guaranteeing the loan beyond a limited recourse guarantee and pledge related to Brightpath II Servicing Corporation shares. Similarly, Brightpath has guaranteed the loan with a pledge on its SPV.

Edgar Matthews & Co. LLC acted as the exclusive financial advisor, while legal advisory for Brightpath and related entities was provided by Cassels.