In July 2022, Vantage at O'Connor, at the direction of its managing member, sold substantially all assets to an unrelated third party and ceased operations. The Partnership received net cash of approximately $19.4 million, inclusive of the return of its contributed equity. The Partnership will recognize a gain on sale of approximately $10.6 million, before settlement of final proceeds and expenses, in the third quarter of 2022.

In July 2022, the Partnership deposited the Magnolia Heights GIL and property loan into an existing TOB trust financing arrangement with Barclays for additional debt financing proceeds, which were used to repay principal on the Acquisition LOC. The following table summarizes the terms of the TOB trust financing upon deposit of the MRB:

TOB Trusts Securitization

TOB
Trust Financing

Stated Maturity

Reset
Frequency

OBFR
Based Rates

Facility Fees

Interest Rate

TOB Trust 2021-XF2953

12,640,000

July 2023

Weekly

1.85%

1.27%

3.12%

In July 2022, the Partnership extended the maturity of the TOB Trust 2021-XF2953 with Barclays from April 2023 to July 2023. There were no additional changes to terms or fees associated with the extension of the TOB trust financings.

In July 2022, the Partnership extended the maturity of five Mizuho TOB trust financings with total outstanding principal of $59.7 million from July 2023 to July 2025. There were no additional changes to terms or fees associated with the extension of the TOB trust financings.

In July 2022, the Partnership executed an amendment to the credit agreement related to the Acquisition LOC that extended the maturity date to June 2024; provides the Partnership two one-year extension options, subject to certain terms and conditions; removed certain restricted payment provisions; modified the covenant requiring senior debt to not exceed a specified percentage of the market value of the Partnership’s assets to be consistent with the Leverage Ratio (as defined by the Partnership) and increased the threshold percentage; modified certain notification provisions regarding defaults under agreements with other creditors; added certain events of default that are consistent with the Partnership’s other secured financing arrangements; and eliminated the Partnership’s ability to finance purchases of existing or to-be-constructed multifamily property improvements under the credit agreement. In addition, the amendment included a modification of the interest rate to be 2.50% plus a variable component that is based on the 1-month forward looking term Secured Overnight Financing Rate as published by CME Group Benchmark Administration Limited.

In July 2022, the provision therapy center securing the Provision Center 2014-1 MRB was successfully sold out of bankruptcy. The Partnership will receive its share of net proceeds once a final accounting is completed by the trustee. The Partnership owns approximately 9.2% of the outstanding senior MRBs, which had a carrying value, inclusive of accrued interest, of approximately $4.6 million as of June 30, 2022.