Covenant Waiver Letter between Tradition Capital Bank and Titan El Toro, LLC (February 21, 2019)
Tradition Capital Bank issued this letter to Titan El Toro, LLC, waiving certain financial covenant requirements under their existing loan agreement. Specifically, the bank waives violations of the debt service coverage ratio, minimum tangible equity, and debt to equity ratio for 2018, and eliminates these requirements for 2019 and beyond. This means Titan El Toro, LLC is no longer obligated to meet these financial ratios as previously required by the loan agreement. The letter is signed by a Senior Vice President of the bank.
Exhibit 4.35
TRADITION CAPITAL BANK
www.tradition.bank
952 ###-###-####
February 21, 2019
| RE: | Titan El Toro, LLC |
Tradition Capital Bank Loan Agreement
To Whom It May Concern:
According to Section 4.10 of the Loan Agreement, Titan El Toro, LLC is required to maintain a Debt Service Coverage Ratio of 1.25 to 1.0. Lender hereby waives the violation of the Debt Service Coverage Ratio for 2018, and eliminates the requirement for 2019 and thereafter.
According to Section 4.19 of the Loan Agreement, Titan El Toro, LLC is required to maintain a Minimum Tangible Equity position of at least $225,000. Lender hereby waives the violations of the Equity Covenant for 2018, and eliminates the requirement for 2019 and thereafter.
According to Section 4.20 of the Loan Agreement, Titan El Toro, LLC shall maintain a Debt to Equity ratio of 4.0 or less. Lender hereby waives the violations of the Debt to Equity ratio for 2018 and eliminates the requirement for 2019 and thereafter.
Please let me know if you need any additional information.
Sincerely,
Tradition Capital Bank
Vonda Wurzburger
Senior Vice President
Member FDIC ● Equal Housing Lender
