About this video
Ellie tests a loan extension against the amended debt-yield covenant and works out the cure before the committee decides.
Full description
Pinecrest's loan matures, and the plan is to extend. Ellie reads the loan agreement and its First Amendment: the extension test moved from 7.75% to 8.50% debt yield, so the property's 7.95% fails by 55 bp. She derives the cure prepayment of $12,305,882 from the documents, with the 0.25% fee shown separately, and compares extending with the two refinancing offers.
Key points
- Amendment changes the extension test
- Cure prepayment derived from the loan documents
- Extend versus refinance on one basis
Video details
- Roles
- Owner, Lender, Asset Manager
- Processes
- Loan Abstraction, Asset Management
- Geographies
- US
- Markets
- United States
- Tags
- author-demo-2, loan extension, debt yield, refinancing