Mountain Commerce Bancorp, Inc. Establishes Senior Revolving Line of Credit

Rhea-AI Summary

Mountain Commerce Bancorp (OTCQX: MCBI) announced a new senior revolving line of credit totaling $20 million, replacing an existing $10 million term loan due April 10, 2023. The new credit line matures on August 1, 2025 at a prime rate minus 0.50%, with interest-only payments due quarterly. A 0.10% fee incurs if the balance drops below $10 million. The company aims to utilize this credit to support its banking operations and general corporate purposes.

Positive

• Establishment of a $20 million senior revolving line of credit.
• Replacement of an existing $10 million term loan, improving liquidity.
• Interest rate favorable at prime minus 50 bps, aiding financial management.

Negative

• None.

KNOXVILLE, Tenn., Aug. 8, 2022 /PRNewswire/ -- Mountain Commerce Bancorp, Inc. (the "Company") (OTCQX: MCBI), the holding company for Mountain Commerce Bank (the "Bank"), today announced that it established a senior revolving line of credit in the maximum amount of $20 million with a financial institution.  This line of credit replaces the existing senior term loan with a current balance of $10 million that was due to mature on April 10, 2023. 

Pursuant to the terms of the loan and security agreement, the line of credit will mature on August 1, 2025 and bear interest at a per annum rate equal to the Prime Rate in effect from time to time minus .50 percent (50 bps), subject to a floor rate of 3.50%.  Interest only payments on the line of credit are due quarterly, with remaining principal amounts due at maturity.  A non-use fee of .10 percent (10 bps) will be assessed if the principal amount declines below $10 million.  The Company's obligations under the line of credit are secured by a pledge of 100% of the stock of the Bank and are subject to terms and covenants similar to the existing senior term loan.  The Company intends to use the available balance of the line of credit to support the operations of the Bank and for general corporate purposes.

About Mountain Commerce Bank

Mountain Commerce Bank is a state-chartered financial institution headquartered in Knoxville, TN. The Bank traces its history back over a century and serves Middle and East Tennessee through 6 branches located in Brentwood, Erwin, Johnson City, Knoxville and Unicoi.  The Bank focuses on responsive relationship banking of small and medium-sized businesses, professionals, affluent individuals, and those who value the personal service and attention that only a community bank can offer.  For further information, please visit us at www.mcb.com.

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SOURCE Mountain Commerce Bancorp, Inc.

FAQ

What is the purpose of the new line of credit established by Mountain Commerce Bancorp MCBI?

The $20 million line of credit will support the operations of the Bank and general corporate purposes.

What was the amount of the previous term loan replaced by the new revolving credit line for MCBI?

The previous term loan was for $10 million and was due to mature on April 10, 2023.

When does the new revolving line of credit for MCBI mature?

The new revolving line of credit matures on August 1, 2025.

What are the interest terms of the new line of credit for Mountain Commerce Bancorp MCBI?

The interest rate is set at the prime rate minus 0.50%, with a floor rate of 3.50%.