Loan Principal – Flight 93 http://flight93.org/ Thu, 24 Nov 2022 07:00:39 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://flight93.org/wp-content/uploads/2021/07/icon-5-150x150.png Loan Principal – Flight 93 http://flight93.org/ 32 32 WILSON BANK HOLDING CO: Change of Directors or Principal Officers, Financial Statements and Schedules (Form 8-K) https://flight93.org/wilson-bank-holding-co-change-of-directors-or-principal-officers-financial-statements-and-schedules-form-8-k/ Wed, 23 Nov 2022 21:51:05 +0000 https://flight93.org/wilson-bank-holding-co-change-of-directors-or-principal-officers-financial-statements-and-schedules-form-8-k/ Article 5.02 Departure of directors or certain officers; Election of directors; Appointment of certain leaders; Compensatory provisions of certain executives. (b) Gary WhitakerExecutive Vice President and Chief Credit Officer Wilson Bank and Trust (the “Bank”), a wholly owned subsidiary of Wilson Bank Holding Company (the “Company”) has communicated to the Bank that it intends to […]]]>

Article 5.02 Departure of directors or certain officers; Election of directors; Appointment of certain leaders; Compensatory provisions of certain executives.

(b) Gary WhitakerExecutive Vice President and Chief Credit Officer Wilson Bank and Trust (the “Bank”), a wholly owned subsidiary of Wilson Bank Holding Company (the “Company”) has communicated to the Bank that it intends to withdraw from the Bank as of December 31, 2022. In connection with this, Taylor Walkerthe Bank’s Executive Vice President – Head of Commercial Lending should be appointed At Mr. Whitaker’s successor as Executive Vice President and Chief Credit Officer of the Bank effective At Mr. Whitaker’s retirement.

Mr. Walker38 years old, has been employed by the Bank as Executive Vice-President – responsible for commercial loans since April 2022. Prior to that, he served as Senior Vice President – Head of Commercial Lending for January 2021 through March 2022. Of January 2017 through December 2022, Mr. Walker served as Senior Vice President of the Bank and President of the Northern Region. Previously, he was Vice President and Chief Business Development Officer of January 2016 through December 2016 and a Vice President and Office Manager of August 2012 through December 2015.

(e) On November 21, 2022the Bank entered into an independent agreement Contractor Agreement with Mr. Whitaker (The Independent Contractor Agreement“) under which Mr. Whitaker is expected to provide certain advisory services to the Bank beginning in April 3, 2023the effective date of the Independent Contractor Agreement. According to the Independent Contractor Agreement, Mr. Whitaker should, among other things, assist the Bank in developing new commercial loan products and services, provide expertise to the Bank in structuring and securing commercial loans, provide support to the Bank’s loan officers and participate in meetings with management and customers. At Mr. Whitaker’s view payments as part of the Independent Contractor Agreement will consist of a guarantee $6,500.00 monthly consultation payment and a guarantee $200.00 monthly payment of a vehicle allowance for the consultancy as well as the opportunity to earn conditional unsecured consultancy payments based on a percentage of loan origination and closing fees collected by the Bank related to the consultancy services he owes provide under the agreement. In addition, he is entitled to receive under the Independent Contractor Agreementif won, a contingent unsecured advisory payout equal to the product of (i) the total of the advisory payouts paid by the Bank to Mr. Whitaker each calendar year during the term of the Independent Contractor Agreement multiplied by (ii) a percentage equal to the sum of (A) the percentage used for the purposes of calculating the payment to employees of the Bank under an annual cash incentive plan for the same calendar year in which these employees participate and which should be linked to the Bank’s return on assets (ROA) and (B) 3.50%. In addition, he will be eligible for other benefits described in the Independent Contractor Agreement, including the ability to participate in Retiree Health Care Plan coverage. The mandate of the Independent Contractor Agreement is for a period of one year from April 3, 2023 effective date, unless terminated earlier in accordance with the terms of the Independent Contractor Agreement.

This summary from the Independent Contractor Agreement is qualified in its entirety by reference to the Independent Contractor Agreementa copy of which is filed herewith as Exhibit 10.1, which Agreement is incorporated by reference herein.

Item 9.01 Financial statements and supporting documents.

  (d) Exhibits


10.1 Independent Contractor Agreement by and between Wilson Bank and Trust and Gary Whitakerdated November 21, 2022 .

104 Cover page interactive data file (embedded in the Inline XBRL document).

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YUNHONG CTI LTD. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-Q) https://flight93.org/yunhong-cti-ltd-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ Fri, 18 Nov 2022 11:13:06 +0000 https://flight93.org/yunhong-cti-ltd-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ Forward-looking statements This Quarterly Report on Form 10-Q includes both historical and "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. We have based these forward-looking statements on our current expectations and projections about future results. Words such as "may," "should," "could," "would," "expect," "plan," "anticipate," "believe," […]]]>

Forward-looking statements


This Quarterly Report on Form 10-Q includes both historical and "forward-looking
statements" within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended. We have based these forward-looking statements on our current
expectations and projections about future results. Words such as "may,"
"should," "could," "would," "expect," "plan," "anticipate," "believe,"
"estimate," "predict," "potential," "continue," or similar words are intended to
identify forward-looking statements, although not all forward-looking statements
contain these words. Although we believe that our opinions and expectations
reflected in the forward-looking statements are reasonable, we cannot guarantee
future results, levels of activity, performance or achievements, and our actual
results may differ substantially from the views and expectations set forth in
this Quarterly Report on Form 10-Q. We disclaim any intent or obligation to
update any forward-looking statements after the date of this Quarterly Report on
Form 10-Q to conform such statements to actual results or to changes in our
opinions or expectations. These forward-looking statements are affected by
factors, risks, uncertainties and assumptions that we make, including, without
limitation, those discussed in Part I, Item 1A of the Company's Annual Report on
Form 10-K for the year ended December 31, 2021 under the heading "Risk Factors."

Insight

We produce film products for novelty, packaging and container applications.
These products include foil balloons, latex balloons and related products, films
for packaging and custom product applications, and flexible containers for
packaging and consumer storage applications. We produce all of our film products
for packaging, container applications and most of our foil balloons at our plant
in Lake Barrington, Illinois. We used to produce our latex balloons and latex
products at a majority-owned facility in Guadalajara, Mexico (Flexo Universal,
or Flexo). This facility was sold during October 2021. Now the Company purchases
latex balloons from an unrelated vendor and distributes in the United States,
primarily to those customers that prefer a combined solution for foil and latex
balloons.. Substantially all of our film products for packaging and custom
product applications are sold to customers in the United States. We market and
sell our novelty items, Candy Blossoms (balloons and candy arranged to look like
a flower bouquet for gifting) and flexible containers for consumer use primarily
in the United States.

On April 23, 2021, the Company entered into a Purchase and Sale Agreement
("PSA") with an unaffiliated purchaser (the "Purchaser") pursuant to which the
Company sold its facility in Lake Barrington, Illinois (the "Lake Barrington
Facility"), in which our headquarters office, production and warehouse space are
located, to the Purchaser. The sale price for the Lake Barrington Facility was
$3,500,000, consisting of $2,000,000 in cash and a promissory note with a
principal amount of $1,500,000, due and payable on May 3, 2021 (the "Purchaser
Promissory Note"). Concurrently with the closing under the PSA, the Company and
the Purchaser entered into a lease agreement pursuant to which the Company
agreed to lease the Lake Barrington Facility from the Purchaser for a period of
ten years. The annual base rent commences at $500,000 for the first year of the
term and escalates annually to $652,386 during the last year of the term of the
lease. Concurrently with the entry into the PSA and the Lease, the Company
entered into a Consent, Forbearance and Amendment No. 6 to Revolving Credit,
Term Loan and Security Agreement (the "Amendment Agreement") with its
then-lender PNC for itself and for the other participant lenders thereunder
(collectively, the "Prior Lender"). Prior to entering into the Amendment
Agreement, PNC had notified the Company that various events of default had
occurred under the Loan Agreement (the "Existing Defaults") and were continuing.
Pursuant to the Amendment Agreement, the Prior Lender consented to the
transactions contemplated by the PSA and the Lease, as required under the Loan
Agreement. As a condition to the Amendment Agreement, the Company agreed that
the full $2,000,000 in cash proceeds from the sale of the Lake Barrington
Facility would be applied to repay the $2,000,000 term loan owed to the Prior
Lender pursuant to the Loan Agreement. The Company further agreed that
$1,500,000 in proceeds from the Purchaser Promissory Note will be applied to
amounts due and owing to the Prior Lender under revolving credit advances made
pursuant to the Loan Agreement (the "Revolving Loans"). Pursuant to the
Amendment Agreement, the Prior Lender agreed to forbear from exercising its
rights and remedies with respect to the Existing Event of Defaults under the
Loan Agreement for a period ending on the earlier of September 30, 2021, the
occurrence of a new event of default under the Loan Agreement, or the occurrence
of a Termination Event (as defined therein). Additionally, certain additions and
amendments to the Loan Agreement were set forth in the Amendment Agreement.

In consideration for entering into the Loan Amendment, the Company agreed to pay
the Prior Lender a Forbearance Fee of $1,000,000. Provided, however, that, so
long as no Event of Default under the Loan Agreement has occurred (including as
a result of a failure of the Company to pay down the Revolving Loans by
$1,500,000 with the proceeds of the Purchaser Promissory Note, (i) if the
Company consummates the Equity Investment by June 30, 2021, the Forbearance Fee
shall be reduced by $250,000, to $750,000, and (ii) if the Company causes all of
the obligations under the Loan Agreement to be paid in full, in cash, on or
before September 30, 2021, the Forbearance Fee shall be reduced by an additional
$500,000, to $250,000. All commitments were accomplished by the required dates,
resulting in a final Forbearance Fee of $250,000 paid during 2021.

September 30, 2021 funding

On September 30, 2021 (the "Closing Date"), the Company entered into a loan and
security agreement (the "Agreement") with Line Financial (the "Lender"), which
provides for a senior secured financing consisting of a revolving credit
facility (the "Revolving Credit Facility) in an aggregate principal amount of up
to $6 million (the "Maximum Revolver Amount") and term loan facility (the "Term
Loan Facility") in an aggregate principal amount of $731,250 ("Term Loan Amount"
and, together with the Revolving Credit Facility, the "Senior Facilities").
Proceeds of loans borrowed under the Senior Facilities were used to repay all
amounts outstanding under the Company's PNC Agreements and for the Company's
working capital. The Senior Facilities are secured by substantially all assets
of the Company.

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Interest on the Senior Facilities shall be the prime rate published from time to
time published in the Wall Street Journal (6.25% as of October 7, 2022), plus
1.95% per annum, accruing daily and payable monthly. Interest shall be
calculated on the basis of a 360-day year for the actual number of days elapsed.
The Term Loan Facility shall be repaid by the Company to Lender in 48 equal
monthly installments of principal and interest, each in the amount of $15,234,
commencing on November 1, 2021, and continuing on the first day of each month
thereafter until the Term Loan Maturity Date (as defined in the Agreement).
Also, the Company will pay the Lender collateral monitoring fees of 4.62% of the
eligible accounts receivable, inventory, and equipment supporting the Revolving
Credit Facility and the Term Loan. In addition, the Company paid the Lender a
loan fee of 1.25% of the Maximum Revolver Amount and the Term Loan Amount upon
the execution of the Agreement. During August 2022, these terms were modified to
reduce the collateral monitoring fee to 2.77% and prevent the Company from
repaying the facility prior to September 2023.

The Senior Facilities mature on September 30, 2023 and shall automatically be
extended for successive periods of one year each, unless the Company or the
Lender gives the other party written notice of termination not less than 90 days
prior to the end of such term or renewal term, as applicable. If the Senior
Facilities are renewed, the Company shall pay the Lender a renewal fee of 1.25%
of the Maximum Revolver Amount and the Term Loan Amount upon each renewal on the
anniversary of the Closing Date. The Company has the option to prepay the Term
Loan Facility (together with all accrued but unpaid interest and a Term Loan
Prepayment Fee (as defined the Agreement) in whole, but not in part, upon not
less than 60 days prior written notice to the Lender.

The Senior Facilities require that the Company shall, commencing December 31,
2021, maintain Tangible Net Worth of at least $4,000,000 or greater ("Minimum
Tangible Net Worth"). Minimum Tangible Net Worth may be adjusted downward by the
Lender, from time to time, in its sole and absolute discretion, based on the
effect of non-cash charges and other factors on the calculation of Tangible Net
Worth. Other debt subordinated to Lender is not considered as a reduction of
this calculation. The Company believes it was in compliance with this covenant
during each relevant month, including as of September 30, 2022 and December 31,
2021.

The Senior Facilities contain certain affirmative and negative covenants that
limit the ability of the Company, among other things and subject to certain
significant exceptions, to incur debt or liens, make investments, enter into
certain mergers, consolidations, and acquisitions, pay dividends and make other
restricted payments, or make capital expenditures exceeding $1 million in the
aggregate in any fiscal year.

As of September 30, 2022 and December 31, 2021, the term loan balance amounted
to $0.5 million and $0.6 million, respectively, which consisted of the principal
and interest payable balance of $0.6 million and $0.7 million and deferred
financing costs of $0.1 million. The balance of the Revolving Line of Credit as
of September 30, 2022 and December 31, 2021 amounted to $3.9 and $5.0 million,
respectively.

Comparability
In July 2019, management and the Board engaged in a review of CTI Balloons and
CTI Europe and determined that they are not accretive to the Company overall,
add complexity to the Company's structure and utilize resources. Therefore, as
of July 19, 2019, the Board authorized management to divest these international
subsidiaries. These actions were taken to focus our resources and efforts on our
core business activities, particularly foil balloons and ancillary products
based in North America. The Company determined that these entities met the
held-for-sale and discontinued operations accounting criteria. Accordingly, the
Company has reported the results of these International operations as
discontinued operations in the Consolidated Statements of Comprehensive Income
and presented the related assets and liabilities as held-for-sale in the
Consolidated Balance Sheets. These changes have been applied for all periods
presented. The Company divested its CTI Balloons (United Kingdom) subsidiary in
the fourth quarter 2019, its Ziploc product line in the first quarter 2020, and
its CTI Europe (Germany) subsidiary in 2021. Additionally, the Company sold its
latex balloon manufacturer in Mexico (Flexo Universal) during October 2021.
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Results of Operations

Net sales. For periods of three months ended September 30, 2022 and 2021, net sales were $2,263,000 and $5,184,000respectively.

For the three-month period ended September 30, 2022 and 2021, net sales by product category were as follows:

                                                         Three Months Ended
                                        September 30, 2022                September 30, 2021
                                        $               % of              $               % of
                                      (000)                             (000)                                           %
Product Category                     Omitted          Net Sales        Omitted          Net Sales      Variance       change

Foil Balloons                            1,612                71 %         4,295                83 %      (2,683 )        (62 )%

Film Products                              537                24 %           689                13 %        (152 )        (22 )%

Other                                      114                 5 %           200                 4 %         (86 )        (43 )%

Total                                    2,263               100 %         5,184               100 %      (2,921 )        (56 )%


For the nine-month periods ended September 30, 2022 and 2021, net sales were
$12,478,000 and $17,495,000respectively.

For the nine-month period ended September 30, 2022 and 2021, net sales by product category were as follows:

                                        September 30, 2022                September 30, 2021
                                        $               % of              $               % of
                                      (000)                             (000)                                           %
Product Category                     Omitted          Net Sales        Omitted          Net Sales      Variance       change

Foil Balloons                             8,118               65 %         13,793               79 %      (5,675 )        (41 )%

Film Products                             1,900               15 %          1,500                9 %         400           27 %

Other                                     2,460               20 %          2,202               12 %         258           12 %

Total                                    12,478              100 %         17,495              100 %      (5,017 )        (29 )%


Foil Balloons. Revenues from the sale of foil balloons decreased during the
three months period from $4,295,000 ending September 30, 2021 compared to
$1,612,000 during the three month period of 2022. Revenues from the sale of foil
balloons decreased during the nine month period from $13,793,000 ending
September 30, 2021 compared to $8,118,000 during the nine month period of 2022.
An increase in the price of helium during 2022 negatively impacted customers of
most types of foil balloons. This price increase was the result of both the
broad inflationary pressures and restrictions on trade with Russia, as we
believe the latter supplies approximately 5% of the helium used in the
marketplace. This combined with temporary individual supply issues created
increased pricing in the market. We also discontinued certain products for which
we were not able to secure adequate inflationary price increases. The price of
helium has reduced during recent months and there are reasons to believe that it
will continue to trend lower over the next several months. This dynamic had a
severe impact on the sales of foil balloons, particularly for our largest
customer.

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Films. Revenues from the sale of commercial films were $537,000 and $1,900,000
during the three and nine month periods ended September 30, 2022, compared to
$689,000 and $1,500,000 during the same periods of 2021.

Other Revenues. Revenues from the sale of other products were $114,000 and
$2,460,000 during the three and nine month periods ended September 30, 2022,
compared to $200,000 and $2,202,000 during the same periods of 2021. The
revenues from the sale of other products during these periods include (i) sales
of a line of "Candy Blossoms" and similar products consisting of candy and small
inflated balloons sold in small containers, (ii) latex balloons, and (iii) the
sale of accessories and supply items related to balloon products.

Sales to a limited number of customers continue to represent a large percentage
of our net sales. The table below illustrates the impact on sales of our top
three and ten customers for the three month periods ended September 30, 2022 and
2021.

                      Three Months Ended
                        September 30,
                          % of Sales
                     2022             2021

Top 3 Customers           79 %           83 %

Top 10 Customers          96 %           90 %



                      Nine Months Ended
                        September 30,
                         % of Sales
                     2022            2021

Top 3 Customers           89 %          82 %

Top 10 Customers          92 %          89 %



During the three and nine months ended September 30, 2022 and 2021, there were
two customer whose purchases represented more than 10% of the Company's
consolidated net sales. Sales to these customers for the three and nine months
ended September 30, 2022 and 2021 are as follows:

                  Three Months Ended                Three Months Ended
                  September 30, 2022                September 30, 2021
                                 % of Net                          % of Net
Customer       Net Sales          Sales          Net Sales          Sales
Customer A   $    1,104,000             49 %   $    3,398,000             66 %
Customer B   $      176,000              8 %   $      277,000              5 %



                   Nine Months Ended                 Nine Months Ended
                  September 30, 2022                September 30, 2021
                                 % of Net                          % of Net
Customer       Net Sales          Sales          Net Sales          Sales
Customer A   $    5,436,000             44 %   $   10,876,000             62 %
Customer B   $    2,846,000             23 %   $    2,384,000             14 %



As of September 30, 2022, the total amounts owed to the Company by these
customers were approximately $679,000 or 45% of the Company's consolidated net
accounts receivable. The amounts owed at September 30, 2021 by these customers
were approximately $1,451,000 or 38% of the Company's consolidated net accounts
receivable.

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Cost of Sales. During the three and nine month period ended September 30, 2022,
the cost of sales was $2,021,000 and $10,394,000, compared to $4,528,000 and
$14,559,000 respectively for the same period of 2021 due to lower sales volume.
As a percentage of sales, cost of sales was 89% and 83% during the three and
nine months ended September 30, 2022, compared to 87% and 83% during the three
and nine months ended September 30, 2021.

General and administrative. During the three and nine month periods ended
September 30, 2022general and administrative expenses were $896,000 and
$2,731,000 compared to $833,000 and $2,730,000 respectively for the same periods in 2021.

Selling, Advertising and Marketing. During the three and nine month period ended
September 30, 2022, selling, advertising and marketing expenses were $103,000
and $435,000 as compared to $104,000 and $350,000 respectively for the same
periods in 2021. The Company expanded its customer outreach and engagement
activities during 2022

Gain on Sale of Assets. On April 23, 2021, the Company sold its facility in Lake
Barrington, Illinois and as a result of the sale recognized a gain amounting to
$3,357,000.

Other Income (Expense). During the three and nine month period ended September
30, 2022, the Company incurred interest expense of $120,000 and $325,000
compared to interest expense of $89,000 and $437,000 respectively during the
same period of 2021. Interest expense decreased due to the reduction of the
Company's senior debt facility, as well as the manner of charges from the
Company's lender during the relevant period. The lender during 2021 charged more
interest, while the lender during 2022 charges lower interest and a monitoring
fee that is recorded in General and Administrative expenses.

Financial position, liquidity and capital resources

Cash flow items.

Operating Activities. During the nine months ended September 30, 2022, net cash
provided by operations was $1,187,000, compared to net cash used by operations
during the nine months ended September 30, 2021 of $1,204,000.

Significant changes in working capital items during the nine months ended
September 30, 2022 included:

? A decrease in accounts receivable of $2,032,000 compared to a decrease in

    accounts receivable of $169,000 in the same period of 2021.


? An increase in inventory of $1,286,000 compared to an increase in stocks of

    $401,000 in 2021.


? A decrease in trade payables of $54,000 compared to a decline in trade

    payables of $714,000 in 2021.



  ? A gain on sale of assets of $3,357,000 in 2021

? A decrease in prepaid expenses and other assets of $562,000 compared to a

increase of $694,000 in 2021.

? An increase in accrued expenses of $877,000 compared to an increase of

accrued charges of $490,000 in 2021.



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Investing Activity. During the nine months ended September 30, 2022, cash used
in investing activity was $121,000, compared to cash provided by investing
activity for the same period of 2021 in the amount of $3,406,000. Investing
activity consisted principally of the cash flows from the sale and leaseback of
our Lake Barrington, Illinois facility, as further described below under the
heading "Liquidity and Capital Resources".

Fundraising activities. In the nine months ended September 30, 2022cash used in financing activities has been $1,031,000 compared to cash used in financing activities for the same period of 2021 of an amount of $650,000. Financing activity consisted primarily of changes in revolving and long-term debt balances, as well as additional investments in 2021.


Discontinued Operations. During the nine months ended September 30, 2021, cash
used by discontinued operations was $1,227,000 with related exchange rate impact
of a cash use of $12,000.

Cash and capital resources.

To September 30, 2022the Company had cash balances of $101,000 compared to the cash balances of $379,000 for the same period of 2021.


The ability of the Company to continue as a going concern is dependent on the
Company executing its business plan and, if unable to do so, in obtaining
adequate capital on acceptable terms to fund any operating losses. Management's
plans to continue as a going concern include executing its business plan,
continuing to focus our Company on the most profitable elements, and exploring
alternative funding sources on an as needed basis. However, management cannot
provide any assurances that the Company will be successful in accomplishing any
of its plans. The COVID-19 pandemic, supply chain constraints and inflationary
pressures have impacted the Company's business operations to some extent and is
expected to continue to do so and, these impacts may include reduced access to
capital. The ability of the Company to continue as a going concern is dependent
upon its ability to successfully generate or otherwise secure other sources of
financing and attain profitable operations. There is substantial doubt about the
ability of the Company to continue as a going concern for one year from the
issuance of the accompanying consolidated financial statements. The accompanying
consolidated financial statements do not include any adjustments that might be
necessary if the Company is unable to continue as a going concern.

The Company's primary sources of liquidity have traditionally been comprised of
cash and cash equivalents as well as availability under the Credit Agreement
with prior lender PNC (see Note 4) until September 30, 2021, at which time we
refinanced with a new facility from Line Capital. Through September 2021, we
entered into a series of forbearance agreements with PNC related to compliance
failures with covenants. We believe that we have been in compliance with
covenants since refinancing with Line Financial.

On April 23, 2021, the Company entered into a Purchase and Sale Agreement
("PSA") with an unaffiliated purchaser (the "Purchaser") pursuant to which the
Company sold its facility in Lake Barrington, Illinois (the "Lake Barrington
Facility"), in which our headquarters office, production and warehouse space are
located, to the Purchaser. The sale price for the Lake Barrington Facility was
$3,500,000, consisting of $2,000,000 in cash and a promissory note with a
principal amount of $1,500,000, due and payable on May 3, 2021 (the "Purchaser
Promissory Note"). Concurrently with the closing under the PSA, the Company and
the Purchaser entered into a lease agreement pursuant to which the Company
agreed to lease the Lake Barrington Facility from the Purchaser for a period of
ten years. The annual base rent commenced at $500,000 for the first year of the
term and escalates annually to $652,386 during the last year of the term of the
lease. Concurrently with the entry into the PSA and the Lease, the Company
entered into a Consent, Forbearance and Amendment No. 6 to Revolving Credit,
Term Loan and Security Agreement (the "Amendment Agreement") with PNC for itself
and for the other participant lenders thereunder (collectively, the "Prior
Lender"). Prior to entering into the Amendment Agreement, PNC had notified the
Company that various events of default had occurred under the Loan Agreement
(the "Existing Defaults") and were continuing. Pursuant to the Amendment
Agreement, the Prior Lender consented to the transactions contemplated by the
PSA and the Lease, as required under the Loan Agreement. As a condition to the
Amendment Agreement, the Company agreed that the full $2,000,000 in cash
proceeds from the sale of the Lake Barrington Facility would be applied to repay
the $2,000,000 term loan owed to the Prior Lender pursuant to the Loan
Agreement. The Company further agreed that $1,500,000 in proceeds from the
Purchaser Promissory Note would be applied to amounts due and owing to the Prior
Lender under revolving credit advances made pursuant to the Loan Agreement (the
"Revolving Loans"). Pursuant to the Amendment Agreement, the Prior Lender agreed
to forbear from exercising its rights and remedies with respect to the Existing
Event of Defaults under the Loan Agreement for a period ending on the earlier of
September 30, 2021, the occurrence of a new event of default under the Loan
Agreement, or the occurrence of a Termination Event (as defined therein).

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In consideration for entering into the Loan Amendment, the Company agreed to pay
the Lender a Forbearance Fee of $1,000,000. Provided, however, that, so long as
no Event of Default under the Loan Agreement has occurred (including as a result
of a failure of the Company to pay down the Revolving Loans by $1,500,000 with
the proceeds of the Purchaser Promissory Note, (i) if the Company consummates
the Equity Investment by June 30, 2021, the Forbearance Fee shall be reduced by
$250,000, to $750,000, and (ii) if the Company caused all of the obligations
under the Loan Agreement to be paid in full, in cash, on or before September 30,
2021, the Forbearance Fee shall be reduced by an additional $500,000, to
$250,000. As these requirements were met, the final Forbearance Fee was
$250,000.

Seasonality


In the foil balloon product line, sales have historically been seasonal with
approximately 40% occurring in the period from December through March of the
succeeding year and 24% being generated in the period July through October in
recent years.

Please see pages 12-20 of our Annual Report on Form 10-K for the year ended
December 31, 2021 for a description of policies that are critical to our
business operations and the understanding of our results of operations. The
impact and any associated risks related to these policies on our business
operations is discussed throughout Management's Discussion and Analysis of
Financial Condition and Results of Operations where such policies affect our
reported and expected financial results. No material changes to such information
have occurred during the three and nine months ended September 30, 2022.

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How New Student Loan Forgiveness Factors May Affect You https://flight93.org/how-new-student-loan-forgiveness-factors-may-affect-you/ Tue, 15 Nov 2022 23:48:03 +0000 https://flight93.org/how-new-student-loan-forgiveness-factors-may-affect-you/ The Biden administration has announced its regulations finalized for updated changes to the student loan structure. These new amendments will limit accrued interest and spread out loan forgiveness relief. According to NPR, the updated factors will have the potential to reduce debt for more than 40 million people and completely relieve debt for approximately 20 […]]]>

The Biden administration has announced its regulations finalized for updated changes to the student loan structure. These new amendments will limit accrued interest and spread out loan forgiveness relief. According to NPR, the updated factors will have the potential to reduce debt for more than 40 million people and completely relieve debt for approximately 20 million students.

Loyola students will no doubt be impacted by this relief plan and, like the nation as a whole, are divided over its effectiveness.

Matt Butler ’23 said: ‘I’m not sure that’s fair, a lot of students take out private loans that won’t be forgiven. Also, the cut points seem to be completely arbitrary.

However, another Loyola student lent his support.

Rebecca Stone ’23 said: “[Federal Student Loan Forgiveness] will help reduce the pressure of some financial issues, as these loans always earn interest. »

The qualification process is quite simple. The US Department of Education has established a dedicated website for the purpose of applying for student loan relief. The only qualification is whether you, as an individual, earned less than $125,000 or less than $250,000 as a couple in 2020 or 2021.

The website only requires your full name, social security number, date of birth, and a current phone number and email address. There are no foreign account forms that need to be created. There is also a checkbox that certifies that all of the above information is true under penalty of perjury.

After submitting your application, you should receive an email from the Department of Education confirming your submission. The approval process is somewhat unclear. The only information that has been released so far is that the Department of Education will cross-check your application with their loan and income information. If there are any discrepancies from their records, you may need to submit additional documentation.

Currently, the Pausing Federal Student Loan Payments is in place. This pause has currently suspended loan repayments, guaranteed a 0% interest rate, and halted collection of defaulted student loans. However, this system is expected to end in the new year and students will once again be burdened with their loans.

US Secretary of Education Miguel Cardona said in a Press release regarding the recently expanded debt relief programs,

“These transformational changes will shield students who have been deceived by their colleges from the bureaucratic nightmares of the past and ensure that all of our targeted debt relief programs deliver on the promises made by Congress in the Higher Education Act. We also protect borrowers from higher costs by limiting the practice of deducting unpaid student loan interest from their principal balance.

In a speech at Delaware State UniversityPresident Biden has made it clear that this student loan forgiveness will not eliminate all student debt.

“By relieving student debt, we’re also taking back student loan payments that you’re going to have to start paying…So in January, people whose debt isn’t fully forgiven, you’re going to have to start paying the loans canceled students. That means billions of dollars a year are also going to start coming back to the treasury,” Biden said.

The president stressed that only lower and middle class debtors will be relieved of their debt. It plans to collect the full amount for others who received student loans but earn more than the $125,000 or $250,000 threshold.

One of the most confusing aspects is whether students who have paid off their debt, but are now eligible for debt relief, will get their money back. The answer to this is complex. If your outstanding debt is less than the relief amount of $10,000 or $20,000, the ministry will handle the entire process of returning that money. It will automatically be redeposited to your account. Otherwise, the status of your money will be included in your debt.

Image courtesy of the White House via Wikimedia Commons.




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PATRIOT NATIONAL BANCORP INC: Change of Directors or Principal Officers, Regulation FD Disclosure, Financial Statements and Exhibits (Form 8-K) https://flight93.org/patriot-national-bancorp-inc-change-of-directors-or-principal-officers-regulation-fd-disclosure-financial-statements-and-exhibits-form-8-k/ Thu, 10 Nov 2022 22:31:11 +0000 https://flight93.org/patriot-national-bancorp-inc-change-of-directors-or-principal-officers-regulation-fd-disclosure-financial-statements-and-exhibits-form-8-k/ Article 5.02 Departure of directors or certain officers; Election of directors; Appointment of certain leaders; Compensatory provisions of certain executives. On November 4, 2022, Thomas E. Slater accepted the appointment as Executive Vice President and Credit Manager of Patriot Bank, North America. (the “Bank”), a wholly owned subsidiary of Patriot National Bancorp, Inc. (the company”). […]]]>

Article 5.02 Departure of directors or certain officers; Election of directors; Appointment of certain leaders; Compensatory provisions of certain executives.

On November 4, 2022, Thomas E. Slater accepted the appointment as Executive Vice President and Credit Manager of Patriot Bank, North America. (the “Bank”), a wholly owned subsidiary of Patriot National Bancorp, Inc. (the company”).

Mr. Slater54 years old, joins the Bank with over 25 years of experience in commercial banking. Mr. Slater also has extensive experience in commercial real estate, as well as commercial and industrial lending. Since
April 2017, Mr. Slater was Senior Vice President and Chief Credit Officer at Investor Bank. Of May 2004 at April 2017, Mr. Slater held several positions at TD Bank, including Assistant Vice President, Credit Department Director, Vice President, Credit Policy Administrator, Loan Officer and Commercial Credit Manager. Of August 1996 at May 2004, Mr. Slater worked at PNC Bank in a variety of roles including portfolio analyst, portfolio manager, relationship manager and middle market underwriter. Of March 1995 at August 1996, Mr. Slater worked as a loan review officer at Trust company bank. Prior to entering commercial banking, Mr. Slater began his career as an associate examiner for the National Bank in Office of the Comptroller of the Currencywhere he worked July 1990 at March 1995. Mr. Slater holds a Bachelor of Science in Economics from Rutgers University.

Section 7.01. FD Regulation Disclosure.

On November 10, 2022the Company issued a press release, a copy of which is attached hereto as Exhibit 99.1, regarding its earnings for the quarter ended
September 30, 2022 and by Mr. Slater appointment.

The information contained in this current report on Form 8-K (including the attachment) is furnished and will not be considered “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended ( the “Exchange Act”), or otherwise subject to the responsibilities of this section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as contrary expressly in this filing.

Item 9.01. Financial statements and supporting documents.

(c) Exhibits

Exhibit No.   Description

99.1            Press Release of Patriot National Bancorp, Inc., dated November
              10, 2022

104           Cover Page Interactive Data File (embedded within the Inline XBRL
              document)

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VA Releases Proposed Refinance Loan Rule | Ballard Spahr LLP https://flight93.org/va-releases-proposed-refinance-loan-rule-ballard-spahr-llp/ Tue, 08 Nov 2022 15:00:41 +0000 https://flight93.org/va-releases-proposed-refinance-loan-rule-ballard-spahr-llp/ The Department of Veterans Affairs (VA) recently released a proposal to update its rules for interest rate reduction refinance loans (often referred to as “IRRRL”) to comply with VA loan refinance provisions. of the Economic Growth, Regulatory Relief and Consumer Protection Act. , which was signed into law in 2018, and the Affordable Mortgage Protection […]]]>

The Department of Veterans Affairs (VA) recently released a proposal to update its rules for interest rate reduction refinance loans (often referred to as “IRRRL”) to comply with VA loan refinance provisions. of the Economic Growth, Regulatory Relief and Consumer Protection Act. , which was signed into law in 2018, and the Affordable Mortgage Protection for Veterans Act of 2019. Comments on the proposal must be submitted by January 3, 2023.

As the name suggests, one of the main uses of an IRRRL is to reduce the interest rate on a veteran’s existing VA loan. However, successive refinances of a veteran’s VA loan, often referred to as loan churning, may not be in the veteran’s best interest. Congress moved to add collateral to VA loan refinance requirements to address loan turnover issues. Requirements include:

  • A maximum period of 36 months for the veteran to recoup the cost of refinancing.
  • The requirement for the veteran to have made at least six consecutive monthly payments on the existing loan, and the new loan being made at least 210 days after the due date of the first payment on the existing loan. These requirements are called “loan seasoning”.
  • A minimal reduction in the interest rate from the existing loan to the new loan.
  • The need for the new loan to provide a tangible net benefit to the veteran.

The proposed rule would provide guidance on compliance with existing legislative requirements.

Maximum cost recovery period

To determine whether the maximum cost recovery period of 36 months is met, the proposal calls for dividing the sum of fees, closing costs and expenses incurred by the veteran to refinance the existing loan, whether paid in cash or financed, by the dollar reduction in the monthly principal and interest payment, with the result reflecting the number of months it will take to recover the costs of refinancing. For example, if the applicable costs are $3,600 and the monthly principal and interest payment is reduced by $100, the result would be 36 and the maximum payback period would be satisfied. Refinancing costs would not include (1) VA financing charges, (2) prepaid interest and amounts held in escrow, and (3) taxes and assessments on the property, even when they are paid outside their normal schedule, which are not incurred solely due to the refinancing transaction, such as property taxes and special assessments. If the monthly principal and interest payment on the new loan is equal to or greater than the monthly principal and interest payment on the existing loan, such as when the veteran refinances a 30-year loan to a 15-year loan, the veteran could not be charged any fees, closing costs or expenses, other than the excluded items listed in the preceding sentence.

Ready seasoning

For the purposes of the requirement of six consecutive monthly installments, the proposal provides that a monthly installment would consist of principal and interest, amounts for taxes and insurance and similar charges, late payment fees and charges, and amounts due under a scheduled repayment. In addition, each monthly payment must be made before or in the month in which the payment is due. Multiple partial payments that are at least equal to the required monthly payment will count towards the six consecutive monthly payment requirements, if all partial payments are made before or during the month in which the monthly payment is due.

For the purposes of the 210-day minimum period, the proposal provides that the note date of the new loan must be at least 210 days after the due date of the first payment on the existing loan. The due date of the first payment on the existing loan is not included in the calculation of the 210 day period, and the note date of the new loan is included in this calculation. For example, if the first payment due date for the existing loan is June 1, 2022, day 1 would be June 2, 2022 and day 210 would be December 28, 2022. The IRRRL note date could be December 28 2022, or later. The 210 day period would include all days that the existing loan is past due. However, if the existing loan is modified, the note date of the new loan must be at least 210 days after the due date of the first payment under the modification. Also, if the existing loan is assumed, the note date of the new loan must be at least 210 days after the due date of the first payment following the assumption.

Reduction of the minimum interest rate

The proposal provides that (1) if the existing loan and the new loan are fixed rate loans, the interest rate must be reduced by at least 50 basis points, and (2) if the existing loan is a rate loan and the new loan is an adjustable rate loan, the interest rate must be reduced by at least 200 basis points. Additionally, where the existing loan is a fixed rate loan and the new loan is an adjustable rate loan, discount points may be included in the loan only if (1) the lower interest rate is not not produced only from discount points (and the lender must provide proof of this to the AV), (2) the lower interest rate is produced only from discount points, up to a point of discount is included in the loan, and the resulting loan balance (including all fees, closing costs and expenses financed) does not exceed 100% of the value of the property, or (3) the interest rate lower is produced only from discount points, more than one discount point is included in the loan and the resulting loan balance (including all fees, closing costs and expenses financed) does not exceed 90% of the value of the property. Existing VA rules allow funding for up to two discount points. Existing VA rules also address when a veteran uses an IRRRL to replace an existing variable rate loan with a fixed rate loan, and those rules are not specifically addressed by the proposal.

Tangible net profit

The refinance must provide a tangible net benefit to the veteran, which the proposal describes as the new loan being “in the veteran’s financial interest.” The Net Tangible Benefit Requirement will be satisfied if (1) the requirements outlined above are met and (2) the Lender provides the Veteran with an Initial Loan Comparison Disclosure and a Final Loan Comparison Disclosure. Disclosures must include:

  • The loan repayment amount of the new loan, with a comparison to the repayment amount of the existing loan.
  • The type of new loan, whether it is a fixed rate loan, a traditional adjustable rate loan or a hybrid adjustable rate loan, with a comparison with the type of existing loan.
  • The interest rate of the new loan, with a comparison with the current interest rate of the existing loan.
  • The term of the new loan, with a comparison to the remaining term of the existing loan.
  • The dollar amount of the monthly principal and interest payment on the new loan, with a comparison to the current dollar amount of the monthly principal and interest payment on the existing loan.

The lender will be required to provide the initial loan comparison disclosure on the same date that the lender provides the initial loan estimate under the TILA/RESPA Integrated Disclosure Rule (TRID). If the lender provides the veteran with a revised loan estimate, the lender would be required to provide an updated loan comparison disclosure if there are any revisions to the previous loan comparison or refinance cost recovery, or s ‘there is any other figure, non-clerical change. Finally, the Lender will be required to provide the Veteran with the Final Loan Comparison Disclosure on the date the Lender provides the Closing Disclosure to the Veteran under the TRID Rule. Following the Veteran’s receipt of the Final Loan Comparison Disclosure, the Veteran must certify to the Lender receipt of the Initial and Final Loan Comparison Disclosures by signing the Final Disclosure. For purposes of the disclosure requirements, lenders would be required to use a new standardized form, Interest Rate Reduction Refinance Loan Comparison Disclosure.

[View source.]

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Greystone Provides $22.6 Million in HUD-Assured Financing for Multifamily Property in Detroit, Michigan https://flight93.org/greystone-provides-22-6-million-in-hud-assured-financing-for-multifamily-property-in-detroit-michigan/ Sun, 06 Nov 2022 00:37:24 +0000 https://flight93.org/greystone-provides-22-6-million-in-hud-assured-financing-for-multifamily-property-in-detroit-michigan/ To share0 Greystone, a leading national commercial real estate finance company, provided a $22.6 million HUD-insured 223(f) loan to refinance a 96-unit multifamily property in Shelby Township, in Michigan. The funding was initiated by Lisa Fischman of Greystone’s New York office, on behalf of Aria of Shelby LLC. Shelby’s Aria in Macomb County is […]]]>

Greystone, a leading national commercial real estate finance company, provided a $22.6 million HUD-insured 223(f) loan to refinance a 96-unit multifamily property in Shelby Township, in Michigan. The funding was initiated by Lisa Fischman of Greystone’s New York office, on behalf of Aria of Shelby LLC.

Shelby’s Aria in Macomb County is a newly constructed townhouse-style rental community comprised of 96 two- and three-bedroom units in 18 freestanding walk-up buildings. The fixed rate non-recourse financing of $22,600,000 has a term and amortization of 35 years. In addition, the property has obtained green certification by NGBS. Going green gets Aria a steeply reduced mortgage insurance premium – a MIP of 0.25% versus 0.60%. In addition to refinancing, the loan proceeds allow the borrower to monetize a portion of the equity in the property.

Notably, the Temporary Certificate of Occupancy (TCO) was issued for the property in May 2022 and the permanent retirement with HUD closing just four months later. The transaction took full advantage of the recent HUD amendment that allows a HUD 223(f) refinance application to be submitted for a newly constructed multifamily property after 30 days of a debt service coverage ratio (DCSR) of 1, 18, and closing is permitted to occur after 90 days of said DSCR.

“Our underwriting team excels in this broad multi-family lending platform that allows us to provide the right financing for each client’s unique situation,” said Ms. Fischman. “We are committed to finding creative and innovative solutions for our customers, and we work tirelessly to ensure that their experience with Greystone is nothing short of exceptional. »

“Our Greystone team were a true partner in this transaction, they understood what we needed and expertly navigated the lending landscape so that we could achieve our goals for this property,” said Ms. Cathy Lombardo, principal of the borrower. “Greystone is truly best in class among multi-family lenders.”


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What First Time Home Buyer Grants are available in Tasmania? https://flight93.org/what-first-time-home-buyer-grants-are-available-in-tasmania/ Tue, 01 Nov 2022 02:43:58 +0000 https://flight93.org/what-first-time-home-buyer-grants-are-available-in-tasmania/ Looking to buy your first home in Tasmania? You’re in luck because the first homeowner’s grant in Tassie is one of the most generous in the country. Rising real estate prices may make it harder for first-time home buyers to enter the market. But, there are government grants that can provide the money you need […]]]>

Looking to buy your first home in Tasmania? You’re in luck because the first homeowner’s grant in Tassie is one of the most generous in the country.

Rising real estate prices may make it harder for first-time home buyers to enter the market. But, there are government grants that can provide the money you need to get into your own home sooner.

Find out how the Tassie First Time Home Owner Grant can help you.


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Are you buying a house or looking to refinance? The table below shows home loans with some of the lowest interest rates on the market for homeowners.


Basic criteria: a loan amount of $400,000, variable, fixed, principal and interest (P&I) real estate loans with an LVR (loan-to-value) ratio of at least 80%. However, the “Compare mortgages” table allows calculations to be made on the variables selected and entered by the user. Certain products will be marked as promoted, featured or sponsored and may appear prominently in tables regardless of their attributes. All products will list the LVR with the product and price list which is clearly published on the product supplier’s website. Monthly repayments, once the basic criteria are modified by the user, will be based on the advertised prices of the selected products and determined by the loan amount, the repayment type, the loan term and the LVR as entered by the user. user/you. *The comparison rate is based on a loan of $150,000 over 25 years. Please note: this comparison rate is only true for this example and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different comparison rate. Rates correct as of November 1, 2022. See disclaimer.


How much is the First Home Owner Grant in Tasmania?

Until June 30, 2023, the Tasmanian First Home Owner Grant is offering first-time home buyers $30,000 who buy or build a new home. A new dwelling is a dwelling that has not been previously occupied or sold as a place of residence. The grant is not available for established households.

Of all the states and territories, Tasmania offers the highest grant.

Just like in the Northern Territory, there is no price limit on the value of your first home to be eligible for the First Home Owners Grant in Tasmania. Similarly, income also does not affect your eligibility for the grant, which means anyone can apply.

First-Time Owner Grant Eligibility

All grant applicants must meet the following eligibility criteria:

  • Be at least 18 years old

  • At least one candidate must be an Australian citizen or permanent resident

  • Occupy the home as your primary place of residence for a continuous period of at least six months beginning within 12 months of a qualifying transaction

  • You or your partner must not have owned residential property in Australia before July 1, 2000

  • You or your partner must not have owned and occupied residential property for more than six months in Australia after July 1, 2000

  • You or your partner must not have received the first home buyers’ bonus before

How do I apply for a First Time Home Buyer Grant in Tasmania?

To apply for the First Home Owner Grant, you can submit an application through an approved agent (your lender or mortgage broker) or, you can submit your own application through the Tasmanian State Revenue Office.

When is the grant paid?

If the application is made through the State Revenue Office, the grant will be paid after the qualifying transaction is completed. Advance payment may be authorized by the Commissioner if deemed appropriate.

If your file has been submitted by an approved agent (usually the lender with whom you are financing), payment will be made when:

Can first time home buyers benefit from stamp duty reductions in Tasmania?

Receiving stamp duty reductions in Tassie depends on the type of house you actually buy.

If you are buying or building a new home, you are eligible for the First-Time Homeowner’s Grant, but you are not eligible for stamp duty reductions.

On the other hand, if you are buying an established home, you may qualify for stamp duty savings, but you are not eligible for the first-time homeowner’s grant.

First-time home buyers who choose to purchase an established home valued at $600,000 or less can qualify for a 50% reduction in stamp duty. To qualify, the buyer must occupy the home as their principal place of residence for a continuous period of six months, beginning within 12 months of the transfer. Also, if you’re buying as a couple, both parties must be first-time buyers to receive the concession.

This concession is due to end on June 30, 2023.

What other TAS programs and grants can first-time home buyers use?

The First Home Regional Guarantee

The Regional Home Buyers Guarantee Scheme is designed to target first-time home buyers in regional Australia.

With the Regional First Home Guarantee, 10,000 guarantees each year will help first-time home buyers purchase a regional home with as little as 5% loan deposit without having to pay IMT. This means you can borrow up to 95% of the value of the property, with the federal government offering the lender a guarantee of up to 15%.

The Family Home Guarantee

The Family Home Guarantee allows single parents to obtain a home loan with only 2% down payment (via a government guarantee of up to 18%). Launching July 1, 2021, 5,000 places will be available each fiscal year through June 2025. Entrants must be a first-time home buyer, with a maximum income of $125,000. The loan must be repaid through principal and interest repayments and cannot exceed 30 years.

The first super savings program for the home

The First Home Super Saver Scheme (FHSS) helps first-time home buyers save a down payment by using the tax deductions superannuation can provide. Essentially, it allows early earner savers to sacrifice up to $15,000 per year for the plan at a reduced tax rate of just 15% (instead of their marginal tax rate).

When you’re ready to buy a home, up to $50,000 can be released from the plan (plus any income).

Image by Peter Robinson via Pexels



Disclaimer

The whole market has not been taken into account in the selection of the above products. Instead, a reduced portion of the market was considered. Products from some vendors may not be available in all states. To be considered, the product and price must be clearly published on the product supplier’s website. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au and Performance Drive are part of the Savings Media group. In the interest of full disclosure, Savings Media Group is associated with Firstmac Group. To learn how Savings Media Group handles potential conflicts of interest, as well as how we are paid, please visit the website links at the bottom of this page.

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CLOI defensive positioning drives outperformance in Q3 https://flight93.org/cloi-defensive-positioning-drives-outperformance-in-q3/ Sat, 29 Oct 2022 14:00:53 +0000 https://flight93.org/cloi-defensive-positioning-drives-outperformance-in-q3/ CLO 0.11 -2.73 7.36 327 AAA 0.23 -1.45 6.48 230 AA 0.08 -3.29 7.04 299 A -1.10 -5.54 7.97 394 BBB -1.43 -7.20 9.83 579 BB -2.56 -9.63 15.07 1,084 Investment Grade Companies -5.11 -18.33 5.74 167 Agglo United States -4.86 -14.68 4.71 59 Leveraged loans 1.46 -2.66 11.04 727 High yield bonds -0.68 -14.62 […]]]>
CLO 0.11 -2.73 7.36 327
AAA 0.23 -1.45 6.48 230
AA 0.08 -3.29 7.04 299
A -1.10 -5.54 7.97 394
BBB -1.43 -7.20 9.83 579
BB -2.56 -9.63 15.07 1,084
Investment Grade Companies -5.11 -18.33 5.74 167
Agglo United States -4.86 -14.68 4.71 59
Leveraged loans 1.46 -2.66 11.04 727
High yield bonds -0.68 -14.62 9.57 543

Source: JP Morgan, ICE Data Indices as of 09/30/2022. CLOs represented by the JP Morgan CLO Index; AAA-rated CLOs represented by the JP Morgan CLO AAA Index, AA-rated CLOs represented by the JP Morgan CLO AA Index, A-rated CLOs represented by the JP Morgan CLO A Index, BBB-rated CLOs represented by the JP Morgan CLO BBB Index , BB-rated CLOs represented by JP Morgan CLO BB Index, Investment Grade Corporates represented by ICE BofA US Corporate Index, US Agg is represented by ICE BofA US Broad Market, Leveraged Loans represented by JP Morgan Leveraged Loan Index and High Yield Bonds represented by the ICE BofA US High Yield Index. The leveraged loan yield represents the modeled yield at a 3-year maturity. US CLO Yield to Worst represents the yield when buying securities at premium or until maturity when priced at a discount to par based on forward benchmark rates.

According to Barclays Research, the supply of new CLO issues increased month-on-month after the summer lull, with a price of $13.3 billion in the month, up from $7.6 billion. in August. Primary issuance is down 19% from 2021 levels. For the third month in a row, no refis or resets were priced in September, after a price of just $0.3 billion in May and June. Total issuance for the year is now 60% lower than in 2021. In the secondary market, TRACE’s supply fell to $16.1 billion in September from $11.4 billion in August, according to Morgan Stanley. Investment-grade volumes increased to $11.8 billion from $8.4 billion in August and lower-grade volumes increased to $4.3 billion from $3.0 billion. Total BWIC volumes increased to $5.2 billion from $3.8 billion in August.

There were two defaults in the Morningstar/LSTA Leveraged Loan Index in September. As a result, the 12-month default rate, by principal, fell from 0.60% in August to 0.90%. We expect the default rate to remain below historical averages in 2022 for the leveraged loan market, despite continued interest rate hikes and indications that Federal Reserve (Fed) hikes will continue throughout. throughout the calendar year. We expect the default rate to increase over the medium term, although we still expect defaults to remain below the long-term historical average of around 3%.

CLO fundamentals were mixed month over month, with credit metrics remaining relatively flat, while market value metrics were significantly weaker. According to Barclays Research and Morgan Stanley, the junior overcollateralization buffer decreased by 1bp to 495bp, CCC/Caa tranches fell from 3.6%/3.2% in August to 3.6%/3.3% in September, the weighted average rating factor (which measures overall credit quality by rating) remained constant, the weighted average spread increased by 2 basis points to 350 basis points, and the exposure to loans whose price is below $90 and below $80 increased by 10.4% to 20.4% and 1.5% to 5.6%, respectively.

Portfolio Strategy: Evolving the Capital Stack

While CLO metrics remain broadly strong, CLO spreads have widened to levels last seen during the peak of the COVID-19 crisis in 2020, as continued geopolitical and economic risks continue to weigh on sentiment. of the market. Despite their relative strength against other fixed income assets at the start of the year, the significant widening of spreads created additional relative value opportunities for CLOs in the secondary market. Additionally, we believe that CLOs will benefit from inflows into the asset class due to the asset class’ very good historical performance under rising default scenarios as well as the floating nature of CLOs. Although the spreads are at the widest levels of the year, they could widen a bit more from here before stabilizing. Accordingly, we continue to move portfolios up the capital stack while adding value through careful stock selection.

The Fund returned 0.02% for the quarter ended September 30, 2022, outperforming its benchmark, the JP Morgan CLO Index, by 0.13%. The outperformance was mainly due to stock selection within the BBB-rated tranche. A higher allocation to A and AA rated tranches also contributed positively, as well as an underweight to BB rated CLOs, reflecting a current conservative positioning. The main detractors from relative performance were the selection within the A-rated tranche and the underweight to the AAA-rated tranches.

Future Outlook: Uncertainty Drives Defensive Positioning

The outlook for the broader US economy remains unclear. The Fed continues to emphasize the tight labor market as the main underlying catalyst for inflation, so a central bank pivot remains unlikely in the near term. Job vacancies still outnumber jobless claims, in contrast to falling inflation in other areas of the economy as measured in business surveys and evidenced by the slowdown in the housing market, heightening fears of a policy error by the Fed. The higher likelihood of a recession has contributed to volatility in financial markets which are already struggling with higher rates and a shortage of liquidity in the current economic environment. Current conditions will likely persist and thwart forecasts until further clarity emerges around where rates will peak.

In this environment, high yield floating rate asset classes like CLOs can offer an attractive return opportunity among credit assets while remaining relatively insulated from geopolitical risks. Additionally, we believe demand for CLOs will continue to be robust as negative real rates will continue to prompt investors to take advantage of the recovery in yields and the relative attractiveness of CLOs versus other credit assets.

However, given the level of uncertainty in the market, we do not believe this is the time to adopt a global risk-based positioning. Instead, we believe further rallies will provide a good opportunity to further de-risk and benefit our prior stance of maintaining a slightly defensive positioning, looking to add relative value at the level of stock selection and managers.

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Originally published by VanEck on October 26, 2022.

For more news, information, and strategy, visit the Beyond Basic Beta Channel.


DISCLOSURES

Index descriptions:

JP Morgan Collateralized Loan Obligation Index (CLOIE) is made up of widely syndicated arbitrage CLOs denominated in US dollars.

AAA-rated CLOs represented by the JP Morgan CLO AAA Index is a subset of the CLOIE index that tracks only the AAA-rated CLO.

AA-rated CLOs represented by the JP Morgan CLO AA Index is a subset of the CLOIE index that tracks only the AA-rated CLO.

A-rated CLOs represented by the JP Morgan CLO A Index is a subset of the CLOIE index that only tracks the A-rated CLO.

BBB-rated CLOs represented by the JP Morgan CLO BBB Index is a subset of the CLOIE index that tracks only the BB-rated CLO.

BB-rated CLOs represented by the JP Morgan CLO BB Index is a subset of the CLOIE index that tracks only the BB-rated CLO.

ICE BofA US Corporate Index (C0A0) tracks the performance of US dollar-denominated investment-grade corporate debt publicly issued in the US domestic market.

ICE BofA US High Yield Index (H0A0) tracks the performance of below-investment grade US dollar-denominated corporate debt publicly issued in the US domestic market.

ICE BofA US Large Market (US00) tracks the performance of publicly issued US dollar-denominated investment-grade debt securities in the US domestic market, including US treasury bills, quasi-government securities, corporate securities, securitized securities, and collateralized securities.

JP Morgan Leveraged Loan Index includes US dollar leveraged loans.

Morningstar/LSTA Leveraged Loan Index includes US dollar leveraged loans.

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An investment in the VanEck CLO ETF (CLOI) may be subject to risks which include, but are not limited to, Collateralized Loan Obligations (CLOs), Debt Securities, LIBOR Replacement, Foreign Currency, Foreign Securities, orientation of investments, newly issued securities, extended settlement, affiliated fund, management, derivatives, cash transactions, market, sub-advisor, operational, concentration of authorized participants, new fund, absence of a prior active market, problems of trading, fund share trading, premium/discount, fund share liquidity, non-diversified risk and seed investors. The Fund may also be subject to liquidity, interest rate, floating rate note, credit, call, extension, high yield securities, income, valuation, securities issued by the private sector, covenant lite loans, default of the underlying asset and CLO manager risk, all of which could adversely affect the Fund.

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Principal® Releases First Sustainable Finance Report Announcing $600M Sustainable Bond Allocations https://flight93.org/principal-releases-first-sustainable-finance-report-announcing-600m-sustainable-bond-allocations/ Wed, 26 Oct 2022 15:10:36 +0000 https://flight93.org/principal-releases-first-sustainable-finance-report-announcing-600m-sustainable-bond-allocations/ Published 33 minutes ago Proposed by Principal Financial Group, Inc. DES MOINES, Iowa, Oct. 26, 2022 /CSRwire/ – Principal Financial Group® released its first-ever mainline Sustainable Finance Report to highlight proceeds allocated to eligible green and social assets from the company’s $600 million sustainability bond issuance in August 2021. The report details the allocation and […]]]>

Published 33 minutes ago

Proposed by Principal Financial Group, Inc.

DES MOINES, Iowa, Oct. 26, 2022 /CSRwire/ – Principal Financial Group® released its first-ever mainline Sustainable Finance Report to highlight proceeds allocated to eligible green and social assets from the company’s $600 million sustainability bond issuance in August 2021. The report details the allocation and product key performance indicators, which went to initiatives such as green buildings, renewable energy, energy efficiency and affordable housing.

The bond is an example of the company’s commitment to advancing environmental, social and governance (ESG) practices in its organization and operations, with a focus on the customer at the heart of how ESG factors are integrated into investment portfolios.

“Principal has embraced sustainability as a core strategy to help strengthen our business, advance our purpose, and build a more inclusive and resilient global community,” said Deanna Strable, Executive Vice President and Chief Financial Officer of Principal.®. “The issuance of a sustainability bond and our first annual sustainability finance report is another example of our commitment to making positive change in the areas where we believe we can have the greatest impact.”

To govern the process for this sustainability bond and future green, social and sustainability bond issuances, Principal has created the Principal Sustainable Financing Framework (the “Framework”). Depending on the framework, eligible assets can include existing or future investments that meet defined criteria to help advance the United Nations Sustainable Development Goals (UN SDGs). A company is only eligible if 90% or more of its revenue comes from activities and criteria that comply with the UN SDGs. Principal obtained an independent second-party opinion on its sustainable finance framework. For more details, see the opinion of the second part of Sustainalytics.

The sustainability bond was a note backed by a five-year, $600 million funding agreement issued through Principal Life Global Funding II. BNP Paribas Securities Corp. was the sole sustainable structuring agent and co-bookrunner with BofA Securities, Inc. and HSBC Securities (USA) Inc. for the sustainable bond, which attracted interest from over 60 investors.

In line with the company’s commitment to transparency, Principal has re-engaged Sustainalytics, a qualified and independent external reviewer, to verify and provide a third-party with limited assurance regarding the handling of Principal’s sustainable finance proceeds and the compatibility of selected eligible assets. with the Core Sustainable Finance Framework.

More information on how Principal works to advance ESG programs can be found at principal.com/sustainability.

Learn more about our corporate responsibility commitments.

About Principal Financial Group®
Main financial group® (Nasdaq: PFG) is a global financial company with 18,500 employees1 passionate about improving the wealth and well-being of people and businesses. In business for over 140 years, we help over 54 million customers1 plan, protect, invest and retire, while working to support the communities in which we operate and build a diverse and inclusive workforce. Director® is proud to be recognized as one of America’s 100 Most Sustainable Companies2a member of the Bloomberg Gender Equality Index, and a top 10 workplace in financial management3.” Learn more about Principal and our commitment to building a better future at principal.com.

1 As of June 30, 2022
2 Barrons, 2022
3 Pensions and investments, 2021

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Offerings of sustainability bonds are generally limited to qualified institutional buyers (QIBs) through the relevant underwriter. May not be a suitable investment for QIBs seeking exposure to green assets.

Principal Global Investors leads global asset management and is a member of the Principal Financial Group®.​

Principal, Principal and Symbol Design, and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of Principal Financial Group®.

©2022 Principal Financial Services, Inc. Insurance products issued by Principal National Life Insurance Co (except New York) and Principal Life Insurance Company®. Plan administration services provided by Principal Life. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities and Advisory Services offered by Principal Securities, Inc., Member SIPC and/or Independent Broker/Dealers. Listed companies are members of Principal Financial Group®, Des Moines, IA 50392.​
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Principal Financial Group, Inc. logo

Principal Financial Group, Inc.

Principal Financial Group, Inc.

Main financial group® (Nasdaq: PFG) is a global financial company with 18,500 employees1 passionate about improving the wealth and well-being of people and businesses. In business for more than 140 years, we help more than 51 million clients1 plan, protect, invest and retire, while working to support the communities in which we operate and create a diverse workforce and inclusive. Director® is proud to be recognized as one of America’s 100 Most Sustainable Companies2, a member of the Bloomberg Gender Equality Index and one of the 10 Best Companies to Work For in Financial Management3. Learn more about Principal and our commitment to building a better future at principal.com.

More Principal Financial Group, Inc.

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How much did Robyn Brown’s house cost? How much do they owe? https://flight93.org/how-much-did-robyn-browns-house-cost-how-much-do-they-owe/ Sun, 23 Oct 2022 23:13:05 +0000 https://flight93.org/how-much-did-robyn-browns-house-cost-how-much-do-they-owe/ We are continuing our scrutiny sister wives real estate coverage with a look at the financial figures of the house of Robyn Brown – aka Brownton Abbey. In our previous article, we shared detailed information about the physical aspects of Brownton Abbey, including square footage, number of bedrooms, and more. In this article, we’ll use […]]]>

We are continuing our scrutiny sister wives real estate coverage with a look at the financial figures of the house of Robyn Brown – aka Brownton Abbey.

In our previous article, we shared detailed information about the physical aspects of Brownton Abbey, including square footage, number of bedrooms, and more. In this article, we’ll use official property records to reveal how much the Browns paid out of pocket for the house, and also how much they owe.

For those of you who want quick and concise information, I’ll include a timeline at the bottom of the article that summarizes all the data.

How much did Robyn Brown’s house cost?

Kody Brown and Robyn Brown originally bought Brownton Abbey for $890,000 in August 2019. From our previous article:

The incredibly large purchase seemed a bit ill-advised given that the Brown family was hoping to start building on Coyote Pass. As is ALWAYS the case whenever a decision involving Robyn might not go down well with viewers, Robyn and Kody had a narrative that portrayed her as innocent and forced to go along.

Robyn was renting a big house and the owners decided to sell it. Robyn and Kody looked for another rental, but there were none (lol) available in Flagstaff. Robyn was ready to move 30 minutes out of town to a rental house she found, but Kody refused to stray that far from her children. As a result, the ONLY alternative the couple had was to buy a lavish $890,000 mansion in Flagstaff. (lol again)

“Buying this house makes me feel like I’m betraying my family and my children,” Robyn said during an emotional confessional, “because buying this house will actually delay us moving onto the property.”

According to property records, Kody and Roby took out a $667,500 mortgage in August 2019. That would mean the couple (and the rest of the Brown family?) put down a down payment of $222,500, which equals 25% of the price. .

If you’ve read our previous article on how much the Brown family paid for Coyote Pass, you know they needed $292,400 to pay for all the properties. So yes, buying Robyn Brown’s house seems to have delayed the family’s ability to pay Coyote Pass and change property boundaries so they could start building.

However, Kody and Robyn freed up some cash by taking out a home equity line of credit in April 2020. If you’re curious about what a home equity line of credit is, here’s a brief definition from Next Advisor (in partnership with Time):

A home equity line of credit (HELOC) is a line of credit secured by your home that you can use for anything. A HELOC works like a credit card in that you can continuously draw on the line of credit, up to the credit limit, during the drawdown period. You have access to the entire line of credit and can spend as much or as little as you want, and you’ll only pay interest on the amount you spend. This makes it different from an installment loan – like a home equity loan or personal loan – where you receive the full loan amount in a lump sum up front.

According to NerdWallet, “Most HELOC lenders will allow you to borrow up to 85% of your home’s value (less what you owe), although some have upper or lower limits.” Using this formula, Kody and Robyn were eligible to take out a loan up to around $190,000.

Kody and Robyn Brown’s second mortgage

It looks like Kody and Roby refinanced the property and got a new mortgage in November 2021, which is very different from taking out a Additional second mortgage. Property records show the couple took out the new 30-year mortgage for $548,250 on Nov. 30, 2021. That’s a decrease of $119,250 in principal in just over two years.

Along with the couple getting the new mortgage, they also took out another $130,000 home equity line of credit.

In December 2021, Kody and Robyn paid off their original mortgage and closed their initial HELOC.

The property records don’t show how much of the mortgage has been paid since December 2021. I guess it’s safe to assume that Kody and Robyn still owe over $540,000 on the mortgage, and what whatever part of the HELOC they used.

Brownton Abbey Financial Timeline

As promised above, here is a timeline of financial records regarding Robyn Brown’s home:

AUGUST 2019 – Kody Brown and Robyn Brown buy a 4,395 square foot house in Flagstaff for $890,000. The spouses put aside $222,500 and took out a 30-year mortgage of $667,500 for the remaining amount.

APRIL 2020 – Kody and Robyn take out a $150,000 home equity line of credit.

NOVEMBER 2021 – Kody and Robyn take out a 30-year mortgage of $548,250 on the property. At the same time, they also take out a $130,000 home equity line of credit.

DECEMBER 2021 – Kody and Robyn pay off their first mortgage after getting another one.

DECEMBER 2021 – Kody and Robyn secure their first home equity line of credit.

Asa Hawks is a writer and editor for Starcasm. You can contact Asa via TwitterFacebook or email starcasmtips(at)yahoo.com

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