Sixth Amendment to Revolving Credit Facility Agreement between Sovereign Bank and Resource Properties Entities

Contract Categories: Business Finance › Modification Agreements
Summary

This amendment modifies the terms of an $18 million revolving credit facility between Sovereign Bank and several Resource Properties entities. The key change is to the annual debt service coverage ratio covenant, requiring the borrowers to maintain a minimum ratio of 1.25 to 1.0 of consolidated net operating income to the greater of actual interest paid or $1,250,000. Additionally, the maximum borrowing amount is now limited to $12.5 million based on current collateral. The amendment is effective immediately upon acceptance by Resource America.

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EX-10.6(C) 2 sixthamendsoverign.htm SIXTH ADMENDMENT WITH SOVEREIGN BANK Sixth Admendment with Sovereign Bank

January 31, 2006


Mr. Steven Kessler
Executive Vice President and CFO
Resource America
1845 Walnut Street
Philadelphia, PA 19103


RE: Resource Properties Line of Credit

 
Dear Mr. Kessler

Please note that effective immediately, the Bank has modified the annual debt service coverage ratio on the $18,000,000 Revolving Credit Facility to Resource Properties, Inc., Resource Properties XXX, Inc, Resource Properties XXXI, Inc, Resource Properties XXIV, Inc. and Resource Properties XXIV, Inc. Section 1 (e) of the Modification of Revolving Credit Loan and Security Agreement dated March 30, 2000 should be deleted in its entirety and substituted with the following:

“Borrower shall maintain a ratio of consolidated Net Operating Income, calculated on an annualized basis, to the greater of (i) actual interest paid or payable on the Line during the period of calculation or (ii) $1,250,000.00, of not less than 1.25 to 1.0.”

This covenant will be used to measure the December 31, 2005 performance. Further, based on the current collateral, borrowings are limited to $12,500,000.

This replaces any previous communication you may have received on this matter. If you agree with this modification, please sign below and send back to my attention at the following address:
 
Sovereign Bank
1500 Market Street
Philadelphia, PA 19102
 
If you have any questions or comments, please call me at ###-###-####.

Sincerely

/s/ Matthew A. Anzideo
Matthew A. Anzideo
Vice President


Agreed and Accepted
/s/ Steven Kessler
Steven Kessler
Executive Vice President and CFO