Proceeds were used to pay off the prior first mortgage and to make a distribution to the joint venture partners. Sotherly used $3.5 million of its share of the proceeds to repay Carlyle debt it owed related to the joint venture.
The new loan is indexed to the one-month Libor plus 395 basis points. It matures in January 2016, according to a press release from Sotherly.
But an 8-K filing from the company obtained via DisclosureNet.com says the loan has a three-year initial term plus two one-year extension options. If the first extension option is exercised, the interest rate jumps to the one-month Libor plus 420 bps. For the second extension, it is Libor plus 445 bps.