Nashua Performing Arts Center -- NMTC Term Sheet Confidential
October 14, 2020
leverage loan (the “Fund Loan”) from Fund Lender in the amount necessary to
permit the funding of the $9,750,000 QEI into Sub-CDE together with payment
of any fees by Investment Fund and establishment of any reserves identified in
the financial projections. Investor equity and the Fund Loan will both fully
fund on the transaction closing date.
Nashua Performing Arts Center -- NMTC Term Sheet Confidential
October 14, 2020
Investment Fund Leverage Lender: A to-be-formed entity, which is anticipated
to be 201 Main Street Financing Corp. (“Fund Lender”). The Fund Lender's
wd, Mascoma
Bank
October 14, 2020
City of Nashua, New Hampshire
Tim Cummings
Delivered Via Email
Re: New Markets Tax Credit Investment Term Sheet for
Nashua Performing Arts Center (the “Term Sheet”)
Except as set forth in the “Transaction Costs,” “ Deposit,” “Exclusivity,” and “Confidentiality”
sections above, this Summary of Term Sheet is not a commitment and does not create any
obligation on the part of Investor and MCD, nor among any of the parties. No such right or
obligation shall arise until definitive documents, satisfactory to all of the parties, are fully
executed and delivered. This outline is only a brief description of the principal terms of the
suggested facility and is intended for discussion purposes only.
Expiration:
If not executed and returned with the deposit within five business days from
the date hereof this term sheet shall be considered null and void.
Confidentiality:
of any affiliate of the Sponsor participating in such transactions, and the
structure, terms and project specifics of such transactions) in its marketing
and communications materials and in presentations or speeches made to its
employees, officers, clients and other interested third parties Such
information shall be referred to herein as “Client Information.”
Interest Rate:
Interest rates on the Loans are likely to be blended for tax opinion purposes.
The total interest generated by the Loans will be based on generating
sufficient cash flow to satisfy the debt service requirements of the Fund
Lender, as well as the annual management and audit and tax preparation fees
(to the extent that they are not paid directly to the CDE Lender).
Loan Term:
Likely to be 30 to 40 years.
Amortization:
A placement fee of 1.00% of the QEI, or $97,500 will be paid to BTCDA,
LLC, an affiliate of Baker Tilly Capital, LLC at closing.
Sub-CDE Level
The CDE will assess a closing fee of 2.00% of the total QEI, or $195,000
ALICB Level
A Structuring, Modeling and Closing fee of 1.00% of the QEI, or $97,500
will be paid to Baker Tilly Capital, LLC
closing. The Fund Lender shail enter into a foreberance agreement for the
seven year NMTC compliance period, in which , the Fund Lender agrees to
refrain from (i) taking any Lien Enforcement Action (ii) exercising any other
tights or remedies it may have under the Fund Loan Documents, including,
without limitation its respective Fund Pledge Agreement, including, but not
limited to accelerating the Loan, collecting rents, appointing (or seeking the
appointment of) a receiver or exercising any other Tights or remedies
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:
