Redwood Mortgage Investors IX 8-K

What Happened
Redwood Mortgage Investors IX, LLC announced on March 11, 2026 (filed March 17, 2026) that it entered into a Third Loan Modification Agreement with Western Alliance Bank. The modification extends the maturity of the company’s Business Loan Agreement (originally dated March 13, 2020 and amended in 2022 and 2024) from March 13, 2026 to March 13, 2028 and keeps the existing line-of-credit structure secured by pledged mortgage notes and deeds of trust.

Key Details

• Maximum borrowing capacity under the credit agreement remains up to $10.0 million, subject to a borrowing base calculation.
• Interest on outstanding advances will accrue at the greater of Term SOFR + 3.5% or 6.0% per annum, payable monthly.
• RMI IX may, before maturity, convert outstanding principal to a two-year term loan maturing March 2030 for a conversion fee of 0.25% (subject to conditions).
• A new minimum liquidity covenant requires at least $1.0 million in liquid assets, measured quarterly.
• Western Alliance will stop making advances if the credit payment delinquency rate exceeds 10% for two consecutive quarters or exceeds 20% in any quarter; the bank will not accelerate repayment solely for those breaches unless another event of default occurs.

Why It Matters
This amendment buys RMI IX two more years of availability under its secured line of credit and adds a short-term liquidity requirement. For investors, the changes affect the company’s near-term funding flexibility (up to $10M available), borrowing cost (floating rate with a 6% floor), and a new liquidity metric that could limit future draws if performance deteriorates. The conversion option to a term loan provides a path to longer-dated financing but requires a fee and conditions.