Terra Firma Capital Corporation Announces the Closing of New Corporate Line of Credit for US$40 Million With Texas Capital Bank

TORONTO, Jan. 14, 2020 (GLOBE NEWSWIRE) -- Terra Firma Capital Corporation (TSX-V: TII) ("Terra Firma" or the "Company"), is pleased to announce the closing of a US$40 million secured corporate line of credit (the "LOC") with Texas Capital Bank ("Texas Capital").

The LOC replaces the previous corporate credit facility the Company had with a Canadian financial institution which was fully repaid in Q4 2019.

The LOC provides for an increase to US$50 million over time, subject to approval by Texas Capital.  The LOC will be used to fund new investments by Terra Firma that will be ultimately held or warehoused for later syndication and to fund general corporate working capital requirements.

"This loan closing represents a very significant development for Terra Firma.  The new corporate line of credit will give the Company more capacity at a lower cost to fund new transactions, and the flexibility provided under the terms of the line will allow Terra Firma to manage cash much more efficiently and cost effectively such that there will no longer be a requirement to carry large sums of cash on our balance sheet for future transactions and ongoing funding obligations.  This new credit facility will not only be accretive to the Company, it will also provide us with the opportunity to increase both the volume of business and the size of our transactions as we continue to execute on our stated strategy to expand our investment portfolio in the US," said Glenn Watchorn, President and Chief Executive Officer. 

About Terra Firma

Terra Firma is a full service, publicly traded real estate finance company that provides real estate financings secured by investment properties and real estate developments throughout Canada and the United States. The Company focuses on arranging and providing financing with flexible terms to real estate developers and owners who require shorter-term loans to bridge a transitional period of one to five years where they require capital at various stages of development or redevelopment of a property. These loans are typically repaid with lower cost, longer-term debt obtained from other Canadian financial institutions once the applicable transitional period is over or the redevelopment is complete, or from proceeds generated from the sale of the real estate assets. Terra Firma offers a full spectrum of real estate financing under the guidance of strict corporate governance, clarity and transparency. For further information please visit Terra Firma's website at www.tfcc.ca.

The TSX-V has neither approved nor disapproved the contents of this press release. The TSX-V does not accept responsibility for the adequacy or accuracy of this press release.

For further information, please contact:

Terra Firma Capital Corporation
Glenn Watchorn
Chief Executive Officer
Phone: 416.792.4702
[email protected]

Terra Firma Capital Corporation
Y. Dov Meyer
Executive Vice Chairman
Phone: 416.792.4709
[email protected]

Ali Mahdavi
Managing Director
Spinnaker Capital Markets Inc.
Phone: 416.962.3300
[email protected]