Black Sea Property AS (the "Company", and together with its consolidated subsidiaries, the "Group") is pleased to announce that the Group company EPO Aheloy OOD (the development and property-owning company for theSunrise River Beach Resort , "EPO Aheloy" and the "Resort", respectively) has entered into a long-term loan agreement withFirst Investment Bank , one of the largest banks inBulgaria . The loan agreement grants aEUR 10 million credit line, divided into one tranche ofEUR 6.5 million and one tranche ofEUR 3.5 million . The loan has a 15-year term, with monthly payments of principal and interest. The first tranche will be used for repayment of the remainingEUR 4.5 million owed under the Group's current loan agreement with UniCredit Bulbank andEUR 2 million will be used for construction works at the Resort (including reimbursement of construction costs occurred during 2023) and for general corporate purposes. Draw-down of the first tranche is subject to establishment of all collateral and securities. The Group expects to make a draw-down of the first tranche as soon as possible after all conditions precedent have been satisfied or waived. The second tranche ofEUR 3.5 million may be utilized for construction works for the next construction phase of the Resort, and draw-down of the second tranche is subject to satisfaction of certain conditions, including that loan-to-value shall not exceed 60%, customary insurance of the properties used for collateral and deed registration of the properties used for collateral, not to change the company managing the Resort without consent, and not to make any payments to Penchev Consult EOOD using income from operations. In light of the latter restriction, the Company and its local Bulgarian partner, Mr.Boyan Bonev will continue to assess opportunities for repayment and/ or refinancing of the loan previously granted by Penchev Consult EOOD to EPO Aheloy. A draw-down of the second tranche will at earliest occur following the summer season 2023. The loan carries an interest rate corresponding to a floating interest rate set byFirst Investment Bank from time to time (and published on the bank's website) and with an added margin of 2.31 percentage points, however not less than 5% per annum. Based on this, the current interest rate is approximately 5% per annum, with the addition of 1% over the outstanding principal annually in bank fees. The loan will be secured, including with mortgages over the Group's material properties and through adherence to the loan agreement by a company controlled byBoyan Bonev (the Company's local Bulgarian partner) and the management company for the Resort. For further information, please contact: Egil Melkevik, Chairman Tel: +47 90 77 09 76 E-mail: em@ms-solutions.no AboutBlack Sea Property AS :Black Sea Property AS is a real estate company with holdings in a real estate project on the Black Sea coast calledSunrise River Beach Resort .Sunrise River Beach Resort is a partially completed project and will upon completion comprise approximately 950 apartments as well as significant commercial space.Black Sea Property AS has indirect ownership to the project and will work to finalizeSunrise River Beach Resort , to realize the project's added value through the sale of residential units and hotel operations.
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