Item 1.01 Entry into a Material Definitive Agreement.
On
The Construction Loans provide for an initial advance of
The Construction Loans may be prepaid, in whole but not in part, but, if prepaid
prior to 18 months following the Closing Date, subject to a prepayment premium
equal to the interest that would have accrued (at the interest rate in effect at
the time of prepayment) from the date of prepayment to the date which is 18
months following the Closing Date, or in the event the Property is sold to an
unaffiliated third party and the Construction Loans are prepaid in the first 12
months following the Closing Date, the interest that would have accrued (at the
interest rate in effect at the time of prepayment) from the date of prepayment
to the date which is 12 months following the Closing Date. No prepayment premium
is due if the Construction Loans are prepaid as a result of the sale of the
Property to an affiliate of
The collateral securing the payment and performance of the obligations under the Construction Loans consists of a first priority lien on, and security interest in, (i) substantially all assets of the Mortgage Borrower, including its fee interests in the Property, an assignment of leases and rents, and an assignment of certain contracts and (ii) the pledge of 100% of the limited liability company ownership interests in the Mortgage Borrower by the Mezzanine Borrower. Certain obligations of the Borrowers under the Loan Agreements will be guaranteed by the Company, including the obligation to complete construction of the Project and to contribute a specified equity amount for such purposes.
The Loan Agreements include customary representations and covenants and events of default for financing transactions of this nature.
The foregoing description of the Loan Agreements does not purport to be complete
and is qualified in its entirety by reference to the full text of the Loan
Agreements, copies of which will be filed as exhibits to the Company's Quarterly
Report on Form 10-Q for the quarterly period ending
--------------------------------------------------------------------------------
Item 2.03 Creation of a Direct Financial Obligation or an Obligation Under and Off-Balance Sheet Arrangement of a Registrant.
The disclosure set forth above under Item 1.01 is incorporated herein by reference.
--------------------------------------------------------------------------------
© Edgar Online, source