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 treasury rate say is 2% add 0.5% say at most 3%
over 2 years say from June 2014 on $58 million to pay out early is PEANUTS!!
3. PE Holdings has a revolving credit facility and a term based facility that is part of the "Plant debt". The revolving facility was reduced by $15M, and the term facility increased. This allowed them to borrow $7M for the plant. At not great terms.
Quote: The additional $7.0 million in borrowings is subject to an original issue discount of 6.25%, representing loan fees payable to the lenders, resulting in net proceeds from the additional borrowings of approximately $6.6 million.
The interest of the facility is Prime + 10%. They borrowed $7M, Paid $400K in immediate fees. Had loan proceeds of $6.6M and they pay interest on the $7M principal.
Again Lenders changed the rules for them to lend again!! See my previous posts!!