SOURCE: Resource America, Inc.

Resource America, Inc.

March 10, 2011 17:16 ET

Resource America, Inc. Extends and Increases Existing Corporate Credit Facility and Enters Into New Revolving Credit Facility

PHILADELPHIA, PA--(Marketwire - March 10, 2011) - Resource America, Inc. (NASDAQ: REXI) (the "Company") reported today that it extended the maturity of its revolving credit facility with TD Bank (the "TD Facility") to August 31, 2012 from October 15, 2011 and increased the maximum facility amount to $14.5 million from $12.9 million. In addition to the term extension and increased facility size, the amended and restated TD Facility provides additional flexibility resulting from (i) converting the loan from a term loan to a two-tier facility that will include a $5.0 million term loan and a $9.5 million revolving component; (ii) a reduction of the interest rate spread from Libor plus 4.50% or the prime rate plus 3.00%, to Libor plus 3.00% or the prime rate plus 2.25%; (iii) a reduction of the minimum interest spread from 7.50% for Libor-based loans and 7.00% for prime-based loans, to 6.00% for both; and (iv) a modification to apply asset sale prepayments solely to the term loan portion of the loan. 

The Company also reported that on February 25, 2011, it entered into a new $3.5 million revolving credit facility with Republic First Bank (the "Republic Facility"). The Republic Facility will bear interest at a rate of the prime rate plus 100 basis points with a floor of 4.5% and will mature on September 28, 2012. 

Thomas Elliott, CFO and SVP of Resource America, commented, "We are very pleased with the modifications that have been made to the TD facility and the addition of a new corporate lending relationship with Republic First Bank. We believe that both of these events signify confidence in our business from our lending partners and that the additional liquidity and term extension will allow us to focus on growing our platforms."

About Resource America, Inc.
Resource America, Inc. is a specialized asset management company that uses industry specific expertise to generate and administer investment opportunities for its own account and for outside investors in the real estate, commercial finance and financial fund management sectors. For more information please visit our website at www.resourceamerica.com or contact pkamdar@resourceamerica.com.

Certain matters discussed within this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Resource America, Inc. believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include financial performance, regulatory changes, changes in local or national economic conditions and other risks detailed from time to time in the Company's reports filed with the SEC, including quarterly reports on Form 10Q, reports on Form 8-K and annual reports on Form 10-K. Resource America, Inc. undertakes no obligation to update or revise any forward looking statement to reflect new or changing information or events.

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