Item 1.01 Entry into a Material Definitive Agreement.
The loans issued under the Term Loan Agreement will, at the Company's election, either bear interest at (i) LIBOR plus 130 basis points to 200 basis points, depending on the Company's leverage ratio, or (ii) Base Rate plus 30 basis points to 100 basis points, depending on the Company's leverage ratio.
In addition, the Company incurs a commitment fee at a rate per annum equal to 0.20% of the unused portion of the total amount committed under the Term Loan Agreement, which fee will be payable quarterly based on outstanding borrowings and the unused portion of the total amount committed under the Term Loan Agreement during the applicable quarter.
The Term Loan Agreement contains customary negative covenants similar to the
Company's current Amended and Restated Credit Agreement, dated as of
The obligations of the Company under the Term Loan Agreement are guaranteed by each direct and indirect wholly owned subsidiary of the Company that owns an Unencumbered Real Estate Asset (as defined in the Term Loan Agreement).
JPMorgan has, from time to time, performed, and may in the future perform, various financial advisory, investment banking and general financing services for the Company, for which JPMorgan has received, and will receive, customary fees and expenses.
The description of the Term Loan Agreement in this Current Report on Form 8-K is qualified in its entirety by reference to the complete Term Loan Agreement that is attached hereto as Exhibit 10.1 and is incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information provided in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. Exhibit No. 10.1 Term Loan Agreement, dated as ofDecember 15, 2021 , amongMonmouth Real Estate Investment Corporation , as borrower, the guarantors and lenders from time to time party thereto, andJPMorgan Chase Bank, N.A ., as administrative agent, sole lead arranger and sole book runner. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) 2
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