Annual report pursuant to section 13 and 15(d)

Loans Payable

v2.4.0.8
Loans Payable
12 Months Ended
Dec. 31, 2013
Debt Disclosure [Abstract]  
Loans Payable

4. Loans Payable

The Company’s loans payable consist of the following:

 

     Monthly      Interest          December 31,  

Property/Description

   Payment      Rate     Maturity    2013      2012  
Shoppes at Eagle Harbor    $ 24,692         4.34   March 2018    $ 3,905,321       $ —     
Lumber River Plaza    $ 18,414         5.65   May 2015      2,973,987         3,050,117   
Monarch Bank Building    $ 9,473         4.15   December 2017      1,483,230         1,533,346   
Perimeter Square    $ 28,089         6.38   June 2016      4,417,812         4,537,456   
Riversedge North    $ 13,556         6.00   January 2019      2,061,790         2,098,138   
Walnut Hill Plaza    $ 25,269         6.75   April 2014      3,464,465         3,528,232   
Harps at Harbor Point    $ 18,122         3.99   December 2015      3,335,628         3,416,550   
Twin City Commons    $ 17,827         4.86   January 2023      3,330,108         3,375,000   
Shoppes at TJ Maxx    $ 33,880         3.88   May 2020      6,409,077         —     
Bixby Commons      Interest only         2.77   June 2018      6,700,000         —     
Bank Line of Credit      Interest only         4.50   May 2014      2,000,000         —     
Forrest Gallery    $ 50,973         5.40   September 2023      9,075,000         —     
Jenks Reasors      Interest only         4.25   September 2016      8,550,000         —     
Tampa Festival    $ 50,797         5.56   September 2023      8,859,888         —     
Starbucks/Verizon    $ 7,405         6.50   April 2023      621,197         —     
Winslow Plaza      Interest only         5.22   December 2015      5,000,000         —     
Senior convertible notes      Interest only         9.00   December 2018      6,000,000         —     
Senior non-convertible notes      Interest only         9.00   December 2015      4,000,000         —     
South Carolina Food Lions Note      Interest only         5.25   January 2024      12,375,000         —     
Shoppes at Eagle Harbor    $ 30,863         6.20   February 2013      —           3,904,664   
Shoppes at TJ Maxx      Interest only         6.00   April 2013      —           6,400,000   
          

 

 

    

 

 

 

Total Loans Payable

  

     $ 94,562,503       $ 31,843,503   
          

 

 

    

 

 

 

On March 11, 2013, the Company entered into a promissory note for $4.0 million to refinance the Shoppes at Eagle Harbor loan that matured in February 2013. The new loan matures on March 11, 2018 and requires monthly principal and interest payments based on a 20-year amortization and a 4.34% fixed interest rate.

The Riversedge North loan matured on April 16, 2013. On January 16, 2014, the loan was renewed until January 16, 2019. The loan requires monthly principal and interest payments based on a 15 year amortization with a fixed interest rate of 6.00%.

On April 19, 2013, we entered in a promissory note for $6.5 million to refinance the Shoppes at TJ Maxx loan that matured. The new loan matures on May 1, 2020 and requires monthly principal and interest payments based on a 25-year amortization and a 3.88% fixed interest rate.

On June 3, 2013, the Company entered into a Promissory Note (the “Note”) with Monarch Bank for a $2,000,000 line of credit. The Note matures on May 12, 2014, provides for an interest rate of 4.5% per annum and is guaranteed by a Deed of Trust and Assignment of Rents on real property.

On December 16, 2013, the Company completed a $10.0 million private placement transaction with eight accredited investors (the “Buyers”). Pursuant to the securities purchase agreement, dated as of December 16, 2013 (the “December 2013 Securities Purchase Agreement”), the Company sold convertible and nonconvertible 9% senior notes and warrants to purchase shares of its common stock totaling $10.0 million dollars. The Company completed the financings in two concurrent tranches. The first tranche consisted of $6.0 million in convertible senior notes due December 15, 2018. During the first two years, the convertible notes will only be available for conversion upon the completion of a secondary offering of common stock in excess of $20 million at a conversion rate of the lesser of 95% of the secondary offering’s per share price or $5.50. After two years, holders of the convertible notes can convert at their discretion at a conversion rate of the lesser of 90% of the market price of the Company’s stock or $5.50. The maximum number of shares of stock issuable upon conversion of the convertible notes is 1,417,079 shares.

The second tranche consisted of $4.0 million in nonconvertible senior notes due December 15, 2015. In addition to the non-convertible notes, the Company issued 421,053 warrants with an exercise price of $4.75. The warrants are not exercisable unless the Wheeler obtains shareholder approval for the transaction.

In connection with the private placement transaction, the Company and the Buyers entered into a Registration Rights Agreement, dated as of December 16, 2013 (the “December 2013 Registration Rights Agreement”). Pursuant to the December 2013 Registration Rights Agreement, the Company agreed to file and maintain a registration statement with the Securities and Exchange Commission for the resale of the shares of common stock underlying the convertible notes and the warrants. Interest on the convertible and nonconvertible senior notes of 9% per annum will be payable monthly.

Certain of the Company’s loans payable have covenants with which the Company is required to comply. As of December 31, 2013, the Company believes it is in compliance with all applicable covenants.

Debt Maturity

The Company’s scheduled principal repayments on indebtedness as of December 31, 2013 are as follows:

 

     For the Years Ending
December 31,
 

2014

   $ 6,423,955   

2015

     16,072,979   

2016

     13,823,136   

2017

     2,586,427   

2018

     16,553,214   

Thereafter

     39,102,792   
  

 

 

 

Total principal maturities

   $ 94,562,503