From: "Jeffrey E." <[email protected]> To: Richard Kahn Subject: Re: AYH Banco Poplar Loan Date: Thu, 21 Jan 2016 18:45:21 +0000 did we get a new ashpalt quote 9 On Thu, Jan 21, 2016 at 2:37 PM, Richard Kahn < > wrote: attached is Banco Poplar term sheet which i just discussed with Mark Lande, IGY attorney. AYH plans to move forward with option 2 on attached term sheet which is as follows: a) 7 year extension of loan from date it is signed (projected - Feb 1, 2016) -> note original expiration was Sep 2017 so extension is approximately 5.5 years b) current interest rate is 1 month libor 0.3655 plus 235 basis points = 2.7155% -> that rate will probably increase in line with each fed increase (60-100 basis points targeted for 2016) c) interest rate per extension is 4.95% vs 2.7155% current rate = 2.2345% additional cost x 12,900,000 (approx outstanding balance) = 288,250 in additional debt service -> that difference will narrow as libor increases d) bank fee of 0.50% of 12,900,000 will cost AYH 64,500 Mark stated that Yacht haven loan is 6+% and he was very pleased with 4.95% rate He also stated that property has plenty of extra cash flow and they are not to concerned with additional debt service costs Please advise Thank you Per 2014 Financial statement footnote The Company obtained a $15,300,000 loan facility from a bank on August 23, 2007. Interest accrues at LIBOR plus 2.35%. Principal and interest are due monthly and the loan matures on September 1, 2017. At December 31, 2014 and 2013, the principal amount outstanding under the loan was $13,286,700 and $13,632,900, respectively. The interest rate in effect at December 31, 2014 was 2.58% (calculated based on a blended LIBOR rate of 0.23% plus 2.35%). The interest rate in effect at December 31, 2013 was 2.60% (calculated based on a blended LIBOR rate of .25% plus 2.35%). EFTA00836031