MPTV to Refinance Mortgage for $9.5 M; $3 M Earmarked for Phase I
IRVINE, Calif., June 7 /PRNewswire-FirstCall/ -- MPTV, Inc. (OTC Bulletin Board: MPTT), an innovator in Timeshare Resort Development, today announced that the Company has received a commitment to refinance its current mortgage on Lake Trop for $9.5 million. $6.5 million of this funding will be used to refinance the current mortgage and the balance of $3 million will be used to commence Phase I of the Lake Trop renovations.
MPTV will refinance its $6.5 million mortgage as well as its $3 million Phase I funding at 9%, a significantly lower rate than that offered by the existing loan, resulting in improved cash flows for the Company.
"With interest rates continuing to decline, we have been evaluating various refinance options. This $9.5 million refinancing both creates significantly lower interest payments on our mortgage and gives us immediate, attractively priced funding, allowing us to commence Phase I. We anticipate that the loan will come in two tranches: $6.5 million for our refinance in June; and, within two weeks an additional $3 million for Phase I. We are very excited to be able to improve our current cash flows and the initial costs of Phase I through one financing transaction," stated Mr. Hurley Reed, President and CEO of MPTV.
"We believe that this Phase I funding is the first step in a comprehensive $100 million financing plan. We are currently in negotiations for three additional financings. Two are loan financings and the third is an equity investment. The loan financings could make available up to $100 million based upon construction schedules. One loan is a $30 million revolving facility while the second is a two-part loan beginning with a $54 million segment. Moreover, this $9.5 million refinance loan initiates the process toward a final credit facility to complete the project," concluded Mr. Reed.
