Nashua Performing Arts Center -- NMTC Term Sheet Confidential
October 14, 2020
(c) that the lease should constitute a true lease for federal income tax
purposes; ;
(d) that cach of the QLICI Loans and Fund Loan should constitute true debt
for federal income tax purposes;
(¢) an economic substance opinion; and
(f) such other appropriate opinions as requested by Investor and CDE after
review of the structure and underlying transaction documentation.
Nashua Performing Arts Center -- NMTC Term Sheet Confidential
October 14, 2020
Amortization: The QLICI Loans will be interest-only for at least seven (7)
years following the closing date. Thereafter, the loans will amortize on to-be-
agreed upon terms.
Nashua Performing Arts Center — NMTC Term Sheet Confidential
October 14, 2020
mutually agreed upon by the Managing Member and the Investor Member. |
QALICR
QALICB/Borrower | The Project consists of the acquisition, renovation and development of existing
Description: improvements located at 201 Main Street in the City of Nashua, New
Nashua Performing Arts Center - NMTC Term Sheet
October 14, 2020
Confidential
Sources
Qualified Equity Investment $9,750,000
Managing Member Equity $975
Total $9,750,975
Uses
A Note
B Note
$7,108,850
$2,446,150
Sub-allocation fee to Allocatee $195,000
Sub-CDE retained cash $975
Total $9,750,975
QEI:
$9,750,000
Reserves:
Nashua Performing Asts Center -- NMTC Term Sheet
October 14, 2020
Confidential
Reserves:
Subject to the terms of the final financial projections, a cash reserve may be
required at the Investment Fund level.
Distributions:
During the NMTC Compliance Period, cash received by Investment Fund from
Sub-CDE will be distributed and used as follows: (1) payment of permitted
administrative and operating expenses, including the annual management fee,
and (2) payment of interest on the Fund Loan.
Put/Call Agreement
Nashua Performing Arts Center —- NMTC Term Sheet Confidential
October 14, 2020
Collatera]: Investment Fund’s membership interest in Sub-CDE shall be
pledged to Fund Lender. The Fund Loan will have no direct lien on the real
estate or improvements associated with the Project.
Guarantees: None.
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.
