Fund
Lender(s):
Entity to be formed, but expected to be 201 Main Street Financing Corp. Entity
may be affiliated with the Borrower, but must include at least 5% differentiation
in ownership from the Borrower and must be in a form and structure that will
satisfy NMTC tax counsel.
NMTC
Transaction
Structure:
For the MCD component of the NMTC Transaction funds of approximately
$9,998,750 shall be aggregated into a special-purpose entity known as a federal
investment fund (the “Fund”). The Fund will be owned by the NMTC Investor
and will be capitalized with funds generated from the net tax credit equity and
loans to the Fund from the Leverage Lender.
MCD estimates that the NMTC Investor will contribute $2,889,900 (“NMTC
Equity”) in exchange for a 100% membership interest in the Fund. This
contribution is computed based upon an aggregate $9,750,000 million NMTC
allocation at an estimated price of $0.76 per credit dollar and is subject to
adjustment based upon the NMTC Investor’s review of the final financial
projections.
The Leverage Lender will provide capital of $7,108,850 to the Fund.
The Fund will use a portion of the proceeds to pay closing costs and make a
qualified equity investment (“QEI”) into the CDE Lender, illustrated as
follows:
NMTC Equity $2,889,900
Leverage Loans 7,108,850
1* Year Inv Fund Mgmt Fee (5,000)
Placement Fee - MCD (146,250)
Placement Fee — Baker Tilly (97,500)
QEI in CDE Lender (9,750,000)
CDE Lender will utilize the QEI proceeds to pay an $195,000 sub-allocation
fee and make loans totaling $9,555,000 to the QALICB. The flow of funds from
the QEI proceeds are as follows:
QEI in Sub-CDE 9,750,000
Sub Allocation Fee to MCD (195,000)
QLICI A Note to Project (7,108,850)
QLICI B Note to Project (2,446,150)
Fund Loan;
The terms and conditions of the Fund Loan shall be determined by the Fund
Lender(s) and must be acceptable to MCD. The security for the Fund Loan
shall be a pledge of the Fund’s ownership interest in the CDE Lender, The
Fund Loan will have no direct lien on the real estate or improvements
associated with the Project. The Fund Loan(s) shall be funded in full at
MCD/NPAC Term Sheet 2
