Chicago Atlantic Real Estate Finance (REFI) Agrees to Merge Into Chicago Atlantic BDC

July 15, 2026 - 05:57

Chicago Atlantic Real Estate Finance, Inc. (REFI) has entered into a definitive merger agreement with Chicago Atlantic BDC, Inc. (LIEN), the two companies announced on June 18. The deal allows REFI to elect to combine operations with the business development company, marking a significant shift in the firm's corporate structure.

REFI has been identified as one of the more beaten-down real estate investment trusts that could be poised for a rotation rally. The merger is expected to streamline operations and create a larger, more diversified investment platform focused on direct lending and specialty finance.

Under the terms of the agreement, shareholders of REFI will receive shares of Chicago Atlantic BDC common stock. The transaction is subject to customary closing conditions, including approval by stockholders of both companies. The boards of directors for both firms have already approved the deal.

The combined entity will have a stronger balance sheet and greater access to capital markets, which could help it weather the current economic environment. For investors, the merger offers a chance to gain exposure to a broader portfolio of loans and investments. The companies expect the deal to close in the third quarter of 2025.