The Borrower is a diversified company. On August 1, 2017, the Borrower entered into that a Master Management Agreement (“Management Agreement”), as “Manager” with an affiliate business as “Developer” whereby the Borrower performs certain services for the affiliate business. The Borrower serves as an employee leasing company. It will be the Lessor of medical equipment and FF&E. The Borrower also owns approximately 36.5 acres of land that it will develop into a Medical Park.

The Borrower has two affiliate companies, Affiliate A and Affiliate B. Affiliate A operates a 29-bed, 68,320 square feet, acute care hospital with emergency room and related health care facilities on a for-profit basis. It is located on 2.42 acres of land that it owns, which is located within the larger, approximately 40-acre Medical Park development. Affiliate B owns a medical office building for which it serves as Lessor on a for-profit basis.

The Borrower has plans to develop the Medical Park with a Nurse Training Facility, in association with Coastal Alabama Community College (the “College”). The College is a public two-year institution, a member of the Alabama Community College System and governed by the Alabama Community College System Board of Trustees. The Alabama Community College System consists of twenty-three comprehensive community colleges, and technical colleges; Marion Military Institute; and the Alabama Technology Network, an extensive workforce development initiative. Coastal Alabama was formed through the consolidation of Alabama Southern Community College, Faulkner State Community College and Jefferson Davis Community College.

In June 2019, the Borrower was awarded a $2.9MM grant from the U.S. Department of Commerce’ Economic Development Administration (“EDA”) to establish roadways, parking, curb & gutter, drainage retention pond, lighting, water and utility infrastructure to further develop the Medical Park. This grant will increase the value of the Loan’s collateral and is not included in any of the collateral values used in the Collateral Summary shown above. The City has also approved matching funds of $724K, bringing the total of grants to $3.624MM. The College has also applied to EDA for a $3.5MM grant to construct the Nurse Training Facility.

Any development that is done with grant funds only serves to improve the value of the collateral at no cost to the Borrower.

Loan ID 0128
DSCR 3.62
LTV 70.24
Note Rate 6.00
Property Location AL
NAICS 532490
Guaranty Type USDA
Loan Term 13 yrs
Rate type Var
Note date N/A
Maturity date N/A
Participation Availability Amount $750,000
Minimum Participation Amount $250,000
Original Loan Amount $5,000,000
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