CREDIT FACILITY

As of September 30, 2020, the Company had $25.6 million of debt outstanding, including net deferred financing costs, with a weighted average interest rate of 3.0% and a weighted average term to maturity of one year.

The following table summarizes the debt balances as of September 30, 2020 and December 31, 2019 and the debt activity for the nine months ended September 30, 2020:



			During the Nine Months Ended September 30, 2020
	Balance as of December 31, 2019		Debt Issuance⁽¹⁾			Repayments		Accretion		Balance as of September 30, 2020
Credit facility	$	24,175,000	$	1,500,000		$	—	$	—	$	25,675,000
Total debt	24,175,000		1,500,000			—		—		25,675,000
Deferred costs	—		(81,139		)	—		3,381		(77,758		)
Total debt, net	$	24,175,000	$	1,418,861		$	—	$	3,381	$	25,597,242

______________________

(1) Includes deferred financing costs incurred during the period.

Credit Facility

The Company has a secured credit facility (the “Credit Facility”) with JPMorgan Chase Bank, N.A. (“JPMorgan Chase”), as administrative agent, and the lenders under the credit agreement, as modified on September 17, 2020 (the “Modified Credit Agreement”). The Modified Credit Agreement reduced the borrowing commitment to $25.7 million, extended the maturity date to September 23, 2021 with no option to further extend, and amended the definition of asset value, in part, by removing certain tenant concentration limits, among other things. The Modified Credit Agreement also converted the Credit Facility balance from revolving loans into non-revolving term loans (the “Term Loans”) and instituted monthly principal payments through the maturity date. As of September 30, 2020, the Company had $25.7 million of debt outstanding under its Credit Facility.

Depending upon the type of loan specified and overall leverage ratio, the Credit Facility bears interest at (i) the one-month, two-month, three-month or six-month London Interbank Offered Rate (“LIBOR”) multiplied by the statutory reserve rate (the “Eurodollar Rate”) plus an interest rate spread of 2.75%; or (ii) a base rate of 1.75%. As of September 30, 2020, the Term Loans outstanding totaled $25.7 million at a weighted average interest rate of 3.0%. The Company had no available borrowings as of September 30, 2020.

The Modified Credit Agreement contains provisions with respect to covenants, events of default and remedies customary for facilities of this nature. In particular, the Modified Credit Agreement requires the Company to maintain a minimum consolidated net worth greater than or equal to 75% of the equity issued from the date of the Modified Credit Agreement, a leverage ratio no greater than 60%, and a fixed charge coverage ratio equal to or greater than 1.50. The Company believes it was in compliance with the financial covenants of the Modified Credit Agreement as of September 30, 2020.

Maturities

Liquidity and Financial Condition — As of September 30, 2020, the Company had $25.7 million of debt outstanding under the Credit Facility maturing on September 23, 2021. The Company expects to enter into new financing arrangements to meet its obligations as they become due in the event that the Merger is not completed. The Company believes cash on hand, net cash provided by operations, and the entry into new financing arrangements will be sufficient to meet its obligations as they become due in the ordinary course of business for at least 12 months following the date these financial statements are issued. The following table summarizes the scheduled aggregate principal repayments for the Company’s outstanding debt subsequent to September 30, 2020:



	Principal Repayments
Remainder of 2020	$	—
2021	25,675,000
2022	—
2023	—
2024	—
Thereafter	—
Total	$	25,675,000