By Stephanie N. Rotondo
Seattle, April 18 MBC Funding II Corp. priced $6 million of 6% senior notes due April 30, 2026, according to a press release.
The fund, a wholly owned subsidiary of Manhattan Bridge Capital Inc., amended the terms of the offering that was originally announced on Jan. 6 on Friday. In an amended Form S-11 filed with the Securities and Exchange Commission, the fund downsized the sale to $6 million from $9.99 million. Additionally, the notes were converted to $1,000-par from $25-par.
Aegis Capital Corp. is acting as the bookrunner. The parent company 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.
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 funds 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.
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.
| Issuer: | MBC Funding II Corp.
|
| Securities: | Senior notes
|
| Amount: | $6 million
|
| Maturity: | April 30, 2026
|
| Bookrunner: | Aegis Capital Corp.
|
| Coupon: | 6%
|
| Price: | Par of $1,000
|
| Yield: | 6%
|
| Call options: | 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; the company must also redeem the issue upon a change of control at 101% of par plus accrued interest; noteholders can request their holdings be redeemed at any time after 2021 at par plus accrued
|
| Pricing date: | April 15
|
| Settlement date: | April 22
|
| Expected listing: | NYSE MKT: LOAN/26
|
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