Alto Ingredients Inc (ALTO)

[ID Supermoney]

Here is why!!

However, in the event of any prepayment of the tranche A-1(and A-2) loans that have a maturity date of June 30, 2016, the Plant Owners must pay a premium equal to the present value of all interest payments that would have accrued from the date of such payment through June 30, 2016, calculated using a discount rate, applied quarterly, equal to the Treasury Rate as of such prepayment date plus 50 basis points.

So instead of paying say 13.5% as of Dec 31, 2013!!

They now pay only 3.5% PLUS 0.5% or 4% interest to June 30, 2016

or a savings of 13.5% for 2.25 years on $58 million costs you About $17 million in interest payments!!!

Now only 4.0% on $58 million on 2.25 years for say $6 million!!

So SAVES YOU $10 million or more in interest!!

WHY WOULD NOT ONE WANT TO PAY OFF these loans???


GLTA


ID