Lument Finance Trust, Inc. 8-K

What Happened

• Lument Finance Trust, Inc. announced amendments to its Credit and Guaranty Agreement (Fifth and Sixth Amendments) with Cortland Capital Market Services LLC as administrative/collateral agent and the lender group.
• The Sixth Amendment, effective February 20, 2026, provides a new incremental secured term loan of $2.25 million (drawn on February 23, 2026) and extends the maturity date of the secured term loans to February 20, 2030.
• Borrowings under the amended agreement carry a fixed interest rate of 9.75% per annum, with scheduled step-ups starting 0.50% per annum for the first three months after February 20, 2029 and additional 0.50% step-ups every three months thereafter until maturity.

Key Details

• New incremental secured term loan: $2.25 million (drawn Feb 23, 2026).
• Aggregate secured term loans now include: $40.25M initial loan (drawn Feb 14, 2019), $7.5M first incremental loan (drawn Aug 23, 2021), plus the $2.25M second incremental loan.
• Maturity extended from Feb 20, 2026 to Feb 20, 2030.
• Amendments modify borrowing base eligibility, permitted debt, advance rates for borrowing-base subsidiaries, and financial covenants (including maximum total net leverage ratio, minimum tangible net worth and a new minimum liquidity covenant).
• Company agreed to pay customary amendment fees and reimburse lender expenses.

Why It Matters

• Liquidity and runway: The $2.25M draw and the four-year maturity extension reduce short-term refinancing pressure by pushing the loan maturity to 2030.
• Cost and covenants: The loan carries a fixed 9.75% rate (with potential step-ups), and the agreement tightens/changes covenants and borrowing base rules—matters that can affect flexibility and financial metrics.
• Direct obligation: The incremental loan creates a new secured financial obligation on the company’s balance sheet and may affect leverage and cash flow available for dividends or investments.

Keywords: credit agreement amendment, secured term loan, maturity extension, liquidity, covenants, interest rate, Lument Finance Trust.