Reading International, Inc. Enters into First Mortgage Loan Agreement
May 13, 2021 at 04:32 pm EDT
Share
Reading International, Inc. through its subsidiaries, Reading Tammany Owner, LLC and US Development, LLC obtained a loan in the original principal amount of $55.0 million from Emerald Creek Capital 3, LLC pursuant to a first mortgage loan agreement, dated May 7, 2021, which Loan is secured by a first priority security interest in 44 Union Square, New York, New York. The principal terms of the Loan are as follows: (i) the term of the Loan is three years with two one-year options to extend; (ii) the amortization schedule is interest only for the entire term at an interest rate equal to one month LIBOR plus six and ninety hundredths percent with a floor of seven percent; and (iii) Borrowers may prepay the Loan at any time on sixty days’ notice subject to a prepayment fee equal to the positive difference between the interest paid up to and including the prepayment date and twelve month’s interest. In other words, there is effectively no prepayment fee if the Loan is prepaid after the first twelve months. The Company has provided certain guarantees and indemnities in support of the Loan including a carry guaranty, a completion guaranty, a recourse guaranty and an environmental indemnity.
Reading International, Inc. is an entertainment and real estate company. The Company is engaged in the development, ownership, and operation of cinemas and retail and commercial real estate in the United States, Australia, and New Zealand. The Companyâs segments are Theatrical Motion Picture Exhibition (Cinema Exhibition), and Real Estate. The Cinema Exhibition segment is engaged in cinema experiences for its guests through hospitality-styled comfort and service, state-of-the-art cinematic presentation, designed venues, curated film, and event programming, and crafted food and beverage options. The Companyâs Real Estate segment is engaged in the real estate business through the development and its ownership and rental or licensing to third parties of retail, commercial, and live theatre assets. Its commercial brands include Reading Cinemas, Consolidated Theatres, Angelika Film Center, State Cinema, Angelika Anywhere, 44 Union Square, Newmarket Village, and Cannon Park.