FCC Proudreed Properties 2005 HSBC SG CORPORATE ...
FCC Proudreed Properties 2005 HSBC SG CORPORATE ...
FCC Proudreed Properties 2005 HSBC SG CORPORATE ...
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May 2014 and end on (but exclude) the Final<br />
Repayment Date.<br />
Final Repayment Date: Loan Interest Payment Date falling in August 2014.<br />
Voluntary Prepayment:<br />
Each Borrower is, provided that each other Borrower<br />
within the same Borrower Group prepays its<br />
Commercial Mortgage Loan in the same proportion<br />
subject to certain conditions described in ‘‘Summary<br />
of the Principal Documents – The Commercial<br />
Mortgage Loan Agreements – Prepayment of the<br />
Commercial Mortgage Loans’’, entitled to prepay its<br />
Commercial Mortgage Loan in whole or in part on<br />
any Loan Interest Payment Date upon giving not<br />
less than 45 days prior written notice to the Issuer.<br />
Amounts prepaid may not be redrawn.<br />
Mandatory Prepayment: Each Borrower must prepay its Commercial<br />
Mortgage Loan on the next Interest Payment Date<br />
(or in certain cases on any date with breakage costs<br />
equal to interest until the next Loan Interest Payment<br />
Date) in the circumstances described in ‘‘Summary<br />
of the Principal Documents – The Commercial<br />
Mortgage Loan Agreements – Prepayment of the<br />
Commercial Mortgage Loans’’.<br />
Financial covenants:<br />
Each Borrower has undertaken to ensure that the<br />
ratio of net rental income to interest charges (both<br />
for an historic calculation period of 12 months and a<br />
projected calculation period of 3 months) in respect<br />
of the relevant Borrower Group is not less than 1.2:1.<br />
If the ratio of net rental income to interest charges in<br />
respect of a Borrower Group falls below 1.3:1 during<br />
the First Reference Period or 2.0:1 during the Second<br />
Reference Period, the monies not required to pay<br />
interest and other prior ranking expenses of the<br />
Borrowers in that Borrower Group will no longer be<br />
distributed to those Borrowers but will instead be<br />
held in the Cash Trap Account of each relevant<br />
Borrower. Such monies, together with other monies<br />
that would otherwise be distributed to the Borrowers<br />
in the relevant Borrower Group, will be applied in<br />
mandatory prepayment if such ratio remains below<br />
1.3:1 for four consecutive quarters or more, until<br />
both the Historical ICR and the Projected ICR are<br />
equal to or above 1.3:1 for more than two consecutive<br />
quarters. If both the Historical ICR and the Projected<br />
ICR in respect of a Borrower Group are equal to or<br />
above 1.5:1 for more than four consecutive quarters,<br />
all amounts then standing to the credit of the Cash<br />
Trap Account of each Borrower in that Borrower<br />
Group will be paid into the Borrower Transaction<br />
Account of each such Borrower and applied in<br />
accordance with the relevant Obligor Priority of<br />
Payments except during the Second Reference Period<br />
where such amounts will be retained in the relevant<br />
Cash Trap Account. For further details of the<br />
financial covenants and the operation of the Cash<br />
Trap Accounts, please see the sections entitled<br />
‘‘Summary of Principal Documents – Commercial<br />
7