Granite Point Expands JPMorgan Facility to $727 Million Eases Covenant Through 2026

Granite Point Mortgage Trust Inc. (GPMT) has amended its repurchase facility with JPMorgan Chase, expanding the maximum amount to $727.0 million and easing a financial covenant for the final two quarters of 2026. The changes were made effective on September 30, 2023, through an amendment to the Amended and Restated Uncommitted Master Repurchase Agreement, initially dated July 31, 2023. Additionally, a related Letter Amendment was executed for the Second Amended and Restated Guarantee Agreement, dated July 28, 2023.

The amendment also involved migrating assets previously financed under repurchase facilities with Citibank and Morgan Stanley Bank. Granite Point confirmed that all obligations under these facilities have been fully paid or satisfied and stated its intention to terminate them. The amendment also adjusted the principal payment waterfall mechanics for newly added Schedule IV purchased assets, specifying how partial repayments are applied.

One key change is the temporary reduction of the Minimum Interest Expense Coverage Ratio covenant to 1.20 to 1.00 for the quarters ending September 30, 2026, and December 31, 2026. The covenant will return to 1.30 to 1.00 for quarters ending on or before June 30, 2026, and from March 31, 2027, onward. Granite Point paid JPMorgan a fee of $156,684.93 for the facility increase.

The larger facility and asset consolidation provide Granite Point with additional secured borrowing capacity. The temporary covenant relief offers more flexibility, but the company’s ongoing obligations under the guarantee mean the facility remains a significant claim on its assets and cash flow.