Manhattan Bridge Capital, Inc. (NASDAQ:LOAN) Files An 8-K Entry into a Material Definitive Agreement

Manhattan Bridge Capital, Inc. (NASDAQ:LOAN) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement.

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Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

Effective July 11, 2018, Manhattan Bridge Capital, Inc. (the “Company”) entered into a Waiver and Amendment No. 1 to the Amended and Restated Credit and Security Agreement (the “Amendment”) with Webster Business Credit Corporation (the “Bank”), Flushing Bank (“Flushing” and together with the Bank, the “Lenders”) and Assaf Ran, as guarantor. In conjunction with the execution of the Amendment, the Company also entered into an Amended and Restated Revolving Credit Note in the principal aggregate amount of $10 million with Flushing (the “Note”) and a Second Amended and Restated Fee Letter (the “Fee Letter”) with the Bank, each dated July 11, 2018.

to the terms of the Amendment, the Company’s existing line of credit with the Lenders (the “Credit Line”) was increased by $5 million to $25 million in the aggregate. In addition, the interest rates relating to the Credit Line were amended such that the interest rates now equal (i) LIBOR plus a premium, which rate aggregated approximately 6% as of July 11, 2018, or (ii) a Base Rate (as defined in the Amended and Restated Credit and Security Agreement) plus 2.25% plus a 0.5% agency fee (as defined below), as chosen by the Company for each drawdown. The Amendment also permits the Company to repurchase, redeem or otherwise retire its equity securities in an amount not to exceed tern percent of its annual net income from the prior fiscal year.

to the terms of the Fee Letter, the Company agreed to pay the Bank an agency fee equal to 0.5% per annum (the “Agency Fee”) on the actual principal amount of advances outstanding during any month.

Between July 11, 2018 and July 12, 2018, the Company borrowed approximately $3.4 million under the Credit Line and used the proceeds to repay an aggregate of approximately $2.4 million previously borrowed from the Company’s Chief Executive Officer, Assaf Ran, and entities he controls, that bore interest at a rate of 6% per annum, and $1 million to a third party lender, that bore interest at a rate of 12% per annum.

About Manhattan Bridge Capital, Inc. (NASDAQ:LOAN)

Manhattan Bridge Capital, Inc. (MBC) is a real estate finance company that specializes in originating, servicing and managing a portfolio of first mortgage loans. The Company offers short-term, secured, non-banking loans to real estate investors to fund their acquisition, renovation, rehabilitation or improvement of properties located in the New York metropolitan area. Its primary business objective is to grow its loan portfolio while protecting and preserving capital in a manner that provides for risk-adjusted returns to its shareholders over the long term through dividends. It intends to achieve this objective by continuing to selectively originate, fund loans secured by first mortgages on residential real estate held for investment located in the New York metropolitan area, and to manage and service its portfolio in a manner designed to generate risk-adjusted returns across a range of market conditions and economic cycles. Its loan portfolio includes various construction loans.

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