Summit Healthcare REIT, Inc: debt financing — Summit Healthcare REIT receives default notice on $12.75M mezzanine loan from Oxford Financing

Summit Healthcare REIT, Inc

Received notice of default on March 12, 2024 for mezzanine loan due to missed interest payments from December 2023 to March 2024.
Oxford exercised rights including appointment of independent manager over GA8 Properties, removing Summit as manager.
Default also triggers cross-defaults under subordinated term loan with Oxford and mortgage loan with CIBC.
Summit remains owner of GA8 Properties but is evaluating impact on consolidation of these assets.
All interest and principal payments to CIBC on the $91M mortgage loan have been made timely.

item 2.04

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Summit Healthcare REIT, Inc reported a default on term loan of $20.0 million with Oxford Financing LLC.

Instrument: term loan
Principal: $20.0 million
Counterparty: Oxford Financing LLC
Event: default

Exact text from the filing

in Georgia (the “GA8 Properties”), subject to a $91.0 million non-recourse first priority mortgage loan with CIBC Bank, USA, (“CIBC”) collateralized by those properties, a $20.0 million non-recourse subordinated term loan with Oxford Financing LLC (“Oxford”) collateralized by those properties and a $12.75 million mezzanine loan with Oxford secured by the equity

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Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Summit Healthcare REIT, Inc reported a default on mortgage of $91.0 million with CIBC Bank, USA.

Instrument: mortgage
Principal: $91.0 million
Counterparty: CIBC Bank, USA
Event: default

Exact text from the filing

REIT, Inc. (“Summit”) formed Summit Georgia Holdings LLC (“Summit Georgia”) and acquired the underlying eight properties located in Georgia (the “GA8 Properties”), subject to a $91.0 million non-recourse first priority mortgage loan with CIBC Bank, USA, (“CIBC”) collateralized by those properties, a $20.0 million non-recourse subordinated term loan with Oxford

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Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Summit Healthcare REIT, Inc reported a default on loan of $12.75 million with Oxford Financing LLC.

Instrument: loan
Principal: $12.75 million
Counterparty: Oxford Financing LLC
Event: default

Exact text from the filing

(“CIBC”) collateralized by those properties, a $20.0 million non-recourse subordinated term loan with Oxford Financing LLC (“Oxford”) collateralized by those properties and a $12.75 million mezzanine loan with Oxford secured by the equity interests of Summit Georgia. As previously disclosed, we have been out of compliance with respect to our debt covenants for our

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Source: SEC EDGAR

accession 0001104659-24-045772

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