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Note G - Notes Payable and Revolving Credit Facility
 6 Months Ended
Jun. 30, 2024
Notes to Financial Statements  
Debt Disclosure [Text Block]

Note G — Notes Payable and Revolving Credit Facility

 

As of June 30, 2024, the principal balances on notes payable are as follows (dollars in thousands):

 

Loan

 

Original Debt Amount

  

Monthly Payment

  

Balance as of 6/30/24

 

Lender

     

Interest Rate

 

Loan Maturity

Mabley Place Garage, LLC

 $9,000  $44  $7,322 

Barclays

      4.25%

12/6/2024

322 Streeter Holdco LLC

  25,900   130   24,324 

American National Insurance Co.

      3.50%

3/1/2025

MVP Houston Saks Garage, LLC

  3,650   20   2,793 

Barclays Bank PLC

      4.25%

8/6/2025

Minneapolis City Parking, LLC

  5,250   29   4,142 

American National Insurance, of NY

      4.50%

5/1/2026

MVP Bridgeport Fairfield Garage, LLC

  4,400   23   3,458 

FBL Financial Group, Inc.

      4.00%

8/1/2026

West 9th Properties II, LLC

  5,300   30   4,263 

American National Insurance Co.

      4.50%

11/1/2026

MVP Fort Worth Taylor, LLC

  13,150   73   10,610 

American National Insurance, of NY

      4.50%

12/1/2026

MVP Detroit Center Garage, LLC

  31,500   194   26,410 

Bank of America

      5.52%

2/1/2027

MVP St. Louis Washington, LLC (1)

  1,380   8   1,224 

KeyBank

  *   4.90%

5/1/2027

St. Paul Holiday Garage, LLC (1)

  4,132   24   3,662 

KeyBank

  *   4.90%

5/1/2027

Cleveland Lincoln Garage, LLC (1)

  3,999   23   3,544 

KeyBank

  *   4.90%

5/1/2027

MVP Denver Sherman, LLC (1)

  286   2   253 

KeyBank

  *   4.90%

5/1/2027

MVP Milwaukee Arena Lot, LLC (1)

  2,142   12   1,898 

KeyBank

  *   4.90%

5/1/2027

MVP Denver 1935 Sherman, LLC (1)

  762   4   675 

KeyBank

  *   4.90%

5/1/2027

MVP Louisville Broadway Station, LLC (2)

  1,682  

I/O

   1,682 

Cantor Commercial Real Estate

  **   5.03%

5/6/2027

MVP Whitefront Garage, LLC (2)

  6,454  

I/O

   6,454 

Cantor Commercial Real Estate

  **   5.03%

5/6/2027

MVP Houston Preston Lot, LLC (2)

  1,627  

I/O

   1,627 

Cantor Commercial Real Estate

  **   5.03%

5/6/2027

MVP Houston San Jacinto Lot, LLC (2)

  1,820  

I/O

   1,820 

Cantor Commercial Real Estate

  **   5.03%

5/6/2027

St. Louis Broadway, LLC (2)

  1,671  

I/O

   1,671 

Cantor Commercial Real Estate

  **   5.03%

5/6/2027

St. Louis Seventh & Cerre, LLC (2)

  2,057  

I/O

   2,057 

Cantor Commercial Real Estate

  **   5.03%

5/6/2027

MVP Indianapolis Meridian Lot, LLC (2)

  938  

I/O

   938 

Cantor Commercial Real Estate

  **   5.03%

5/6/2027

St Louis Cardinal Lot DST, LLC

  6,000  

I/O

   6,000 

Cantor Commercial Real Estate

  **   5.25%

5/31/2027

MVP Preferred Parking, LLC

  11,330   66   10,910 

Key Bank

  **   5.02%

8/1/2027

MVP Memphis Poplar

  1,800   14   1,795 

KeyBank

      7.94%

3/1/2029

MVP St. Louis

  4,100   31   4,089 

KeyBank

      7.94%

3/1/2029

Less unamortized loan issuance costs

   (701)          
          $132,920           

 

(1)

We issued a promissory note to KeyBank for $12.7 million secured by the pool of properties.

(2)

We issued a promissory note to Cantor Commercial Real Estate Lending, L.P. for $16.25 million secured by the pool of properties.

 

* 2 Year Interest Only

** 10 Year Interest Only

I/O - Interest Only

 

In  February 2024, we refinanced the note payable for MVP St. Louis 2013 and MVP Memphis Poplar with a five year, $5.9 million note payable with an interest rate of 7.94%.

 

Reserve funds are generally required for repairs and replacements, real estate taxes, and insurance premiums.  Some notes contain various terms and conditions including debt service coverage ratios and debt yield limits. As of  June 30, 2024, borrowers for one of our loans totaling $26.4 million, failed to meet certain loan covenants. As a result, we are subject to additional cash management procedures, which resulted in approximately $0.6 million of restricted cash as of  June 30, 2024. In order to exit cash management, certain debt service coverage ratios or debt yield tests must be exceeded for two consecutive quarters to return to less restrictive cash management procedures.

 

As of June 30, 2024, future principal payments on notes payable are as follows (dollars in thousands):

 

2024 (remainder)

  8,918 

2025

  29,168 

2026

  22,782 

2027

  67,151 

2028

  95 

Thereafter

  5,507 

Total

 $133,621 

 

Revolving Credit Facility

 

In  March 2022, we entered into a Credit Agreement (the “Credit Agreement”) with KeyBank Capital Markets, as lead arranger, and KeyBank, National Association, as administrative agent. The Credit Agreement refinanced our then-current loan agreements for certain properties. The Credit Agreement provided for, among other things, a $75.0 million revolving credit facility, originally maturing on  April 1, 2023 (the “Revolving Credit Facility”). In  November 2022, we executed an amendment to the Credit Agreement which extended the maturity of the Revolving Credit Facility to  April 1, 2024, amended certain financial covenants through the new term, and added a requirement for us to use diligent efforts to pursue an equity raise or liquidity event by  March 31, 2023. On the Closing Date, we entered into a second amendment to the Credit Agreement which reduced the total commitment from $75 million to $58.7 million, required us to remit $15 million of the proceeds from the Preferred PIPE Investment to pay down outstanding borrowings under the Credit Agreement, removed the fixed charge coverage ratio, required a borrowing base interest coverage ratio, required us maintain at least $7 million in unencumbered cash and cash equivalents, required contribution of certain real property as collateral, increased the debt pool yield, and established a reserve for certain cash collateral to be used for interest payments.

 

In March 2024, we executed the Third Amendment to the Credit Agreement, which provided extension options through June 2025 with increased interest rate spreads above SOFR at each extension. We executed one of these options, which extends the maturity through October 2024. Exercising an option following that maturity date would result in an interest rate spread above SOFR of 3.5%. In June 2024, we requested, and KeyBank accepted, a fixed all-in rate on our Revolving Credit Facility of 8.4% from July 1 until October 1, 2024.

 

As of June 30, 2024, the balance of unamortized loan fees associated with the Revolving Credit Facility is $0.1 million which is being amortized to Interest Expense, Net in the Consolidated Statements of Operations over the remaining term.