Anchor BanCorp Wisconsin Inc.(fka ABCWQ)

[56Chevy]

AnchorBank of Madison will have more time to pay off a hefty bank loan.

November 30, 2012

The $116.3 million loan, from a consortium of banks led by U.S. Bank, was due in full Friday. But Anchor filed a document with federal regulators on Friday saying the lenders have agreed to extend the maturity of the loan until June 30, 2013, at a continuing annual interest rate of 15 percent. The bank will have to meet certain capitalization ratios and will have to keep its delinquent loans and foreclosed properties to no more than 13 percent of total loans and real estate.

It is the seventh time the maturity date has been extended, and along with the extra time, Anchor will have to pay an additional fee of $872,250.

That brings the total owed to $170.2 million, which includes $47.5 million in interest and nearly $7.3 million in fees.

"With the extension of the credit agreement, AnchorBank is able to advance (its) capital raising efforts, talking to and meeting with potential investors. Management is hopeful to have a comprehensive solution in the coming months," Chris Bauer, president and chief executive, said in a written statement.

The debt stems from a long-standing line of credit Anchor has had with the banks. Because of its struggle with bad real estate loans, Anchor has made no payments on the principal since December 2008 and no interest payments since December 2009.

Anchor also owes $132 million to the U.S. Treasury (TARP) based on $110 million in preferred stock purchased by the government through the Troubled Asset Relief Program in 2009. The bank has not been allowed to make dividend payments because of its financial difficulties.

http://host.madison.com/business/anchorbank-gets-more-time-to-pay-off-big-loan/article_a79a61e2-3b32-11e2-8e79-0019bb2963f4.html

*On the radar.