Manhattan Bridge’s MBC Funding II to price $9.99 million of $25-par notes due 2026

By Stephanie N. Rotondo

Seattle, Jan. 6 – MBC Funding II Corp. intends to sell $9.99 million of $25-par senior secured notes due 2026, the company said in a form S-11 filed with the Securities and Exchange Commission on Wednesday.

Aegis Capital Corp. is acting as the bookrunner.

Parent company Manhattan Bridge Capital will fully and unconditionally guarantee the notes.

Interest will be payable monthly. The fund can redeem the notes after 2019 – but prior to 2020 – at 103% of par plus accrued interest. If redeemed in 2020, but before 2021, the redemption price is 101.5% of par plus accrued interest.

The company must also redeem the issue upon a change of control at 101% of par plus accrued interest.

Additionally, noteholders can request their holdings be redeemed at any time after 2021 at par plus accrued interest.

If at any time, the fund’s mortgage loan portfolio plus its cash on hand equals less than 120% of the outstanding amount of notes, the company will begin paying off the principal amount on a quarterly basis.

The notes will be listed on the Nasdaq Global Market.

Proceeds will be used to purchase from the parent a pool of mortgage loans. The parent will then use those funds to reduce its outstanding balance under the Webster credit line.

The fund and its real estate finance parent company are based in Great Neck, N.Y.

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