Since they say terms were favorable, why not disclose them and end all doubt? So how much above prime are they paying? Re: similiar margin to previous line. "bears interest at floating rate of LIBOR plus 2.0% to 2.5%, with a LIBOR floor of 0.5% and has an unused commitment fee of 0.3%." So now 8.25%? US prime 6.25% plus 2%?
Also what are the other terms? Restrictive covenants, payback poriod on term loans, rates on term loans, security pledged...etc etc?
Paul Stewardson
Calling in for Chelsea. Congratulations on the quarter. Can you touch on the interest rate for the new credit facilities? I know you mentioned there was a low cost of capital, but is it similar to the old credit facility, is that kind of a reasonable way or is a bit of margin given the increased times?
Hardik Mehta
Yes, sure. We would certainly encourage people to kind of wait. We would definitely be taking a formal announcement once we close on the credit facility, but it would be safe to say that the margin would be similar to what we had in the past except for, as you all probably know the market moving towards so far versus prime rate or stuff like that. So there will be some changes related to that. But as far as margin goes, it should be within a similar pattern to what the previous line was