Mill City Ventures III, Ltd. Announces Amendment to Loan Agreement with Mustang Funding, LLC
Mill City Ventures III (NASDAQ: MCVT) has announced the execution of Amendment No. 5 to its Fourth Short-Term Loan Agreement and Promissory Note with Mustang Funding, . The amendment, effective January 21, 2025, includes key changes to the loan terms:
The maturity date has been extended to March 28, 2027, and the annual interest rate structure has been modified to 20%, split between 15% payable in cash monthly and 5% deferred until maturity or earlier acceleration.
According to CEO Douglas M. Polinsky, these amendments align with Mill City's strategic objectives and demonstrate their commitment to fostering beneficial partnerships while optimizing shareholder returns.
Mill City Ventures III (NASDAQ: MCVT) ha annunciato l'esecuzione dell'emendamento n. 5 al suo Quarto Contratto di Prestito a Breve Termine e Nota di Paga con Mustang Funding. L'emendamento, che entrerà in vigore il 21 gennaio 2025, include modifiche chiave ai termini del prestito:
La data di scadenza è stata estesa al 28 marzo 2027 e la struttura del tasso d'interesse annuale è stata modificata al 20%, suddivisa tra il 15% pagabile in contanti mensilmente e il 5% rimandato fino alla scadenza o accelerazione anticipata.
Secondo il CEO Douglas M. Polinsky, questi emendamenti sono in linea con gli obiettivi strategici di Mill City e dimostrano il loro impegno a promuovere partnership vantaggiose ottimizzando al contempo i ritorni per gli azionisti.
Mill City Ventures III (NASDAQ: MCVT) ha anunciado la ejecución de la Enmienda No. 5 a su Cuarta Acuerdo de Préstamo a Corto Plazo y Nota Promisoria con Mustang Funding. La enmienda, efectiva a partir del 21 de enero de 2025, incluye cambios claves en los términos del préstamo:
La fecha de vencimiento se ha extendido hasta el 28 de marzo de 2027, y la estructura de la tasa de interés anual ha sido modificada al 20%, dividido entre el 15% pagadero en efectivo mensualmente y el 5% diferido hasta el vencimiento o una aceleración anticipada.
Según el CEO Douglas M. Polinsky, estas enmiendas están alineadas con los objetivos estratégicos de Mill City y demuestran su compromiso con el fomento de asociaciones beneficiosas mientras optimizan los retornos para los accionistas.
Mill City Ventures III (NASDAQ: MCVT)는 Mustang Funding와의 제4단기 대출 계약 및 약속 어음에 대한 제5차 수정안을 시행했다고 발표했습니다. 이 수정안은 2025년 1월 21일부터 효력이 발생하며, 대출 조건의 주요 변경 사항을 포함합니다:
만기일이 2027년 3월 28일로 연장되었으며, 연간 이자율 구조가 20%로 수정되어 15%는 매월 현금으로 지급되고, 5%는 만기 또는 조기 가속까지 연기됩니다.
CEO 더글라스 M. 폴린스키에 따르면, 이러한 수정은 밀 시티의 전략적 목표와 일치하며, 유익한 파트너십을 조성하고 주주 수익을 최적화하려는 그들의 의지를 보여줍니다.
Mill City Ventures III (NASDAQ: MCVT) a annoncé l'exécution de l'Amendement n° 5 à son Quatrième Contrat de Prêt à Court Terme et Lettre de Change avec Mustang Funding. L'amendement, effectif à partir du 21 janvier 2025, comprend des modifications clés des conditions du prêt :
La date d'échéance a été prolongée jusqu'au 28 mars 2027, et la structure du taux d'intérêt annuel a été modifiée à 20 %, répartie entre 15 % payables en espèces chaque mois et 5 % différés jusqu'à l'échéance ou une accélération anticipée.
Selon le PDG Douglas M. Polinsky, ces amendements sont conformes aux objectifs stratégiques de Mill City et démontrent leur engagement à favoriser des partenariats bénéfiques tout en optimisant les rendements pour les actionnaires.
Mill City Ventures III (NASDAQ: MCVT) hat die Ausführung der Änderung Nr. 5 zu seinem vierten Kurzfristigen Kreditvertrag und Schuldschein mit Mustang Funding bekannt gegeben. Die Änderung, die am 21. Januar 2025 wirksam wird, beinhaltet wesentliche Änderungen der Kreditbedingungen:
Das Fälligkeitsdatum wurde auf den 28. März 2027 verlängert, und die Struktur des Jahreszinses wurde auf 20% geändert, aufgeteilt in 15%, die monatlich in bar zahlbar sind, und 5%, die bis zur Fälligkeit oder früheren Beschleunigung aufgeschoben werden.
- Extended loan maturity to March 28, 2027, improving long-term revenue visibility
- Increased annual interest rate to 20% from previous rate
- 5% of interest rate is deferred until maturity, impacting immediate cash flows
Insights
The amendment to Mill City Ventures' loan agreement with Mustang Funding represents a strategic financial restructuring that warrants investor attention. The revised terms reveal two key aspects that directly impact Mill City's financial outlook:
First, the 20% annual rate structure - split between 15% immediate cash payments and 5% deferred interest - is particularly noteworthy. This arrangement optimizes Mill City's immediate cash flow while building a deferred interest cushion that will materialize in 2027. The 15% cash component ensures steady monthly revenue, while the 5% deferred portion creates a future income stream that could significantly boost profitability at maturity.
Second, the extension of maturity to March 2027 provides enhanced visibility on long-term revenue streams and reduces refinancing risk in the near term. This extended timeline also suggests confidence in Mustang Funding's creditworthiness and ability to service the loan.
For investors, this restructuring indicates Mill City's sophisticated approach to portfolio management. The company is effectively balancing immediate income needs with long-term value creation, while maintaining strong client relationships. The terms suggest a robust risk-adjusted return profile, particularly important in the current market where non-bank lenders face increasing competition and pressure on margins.
MINNEAPOLIS, MN / ACCESS Newswire / January 29, 2025 / Mill City Ventures III, Ltd. ("Mill City") (NASDAQ:MCVT), a non-bank lender and specialty finance company, announced today the execution of Amendment No. 5 to its Fourth Short-Term Loan Agreement and Fourth Short-Term Promissory Note ("the Note") with Mustang Funding, LLC. This amendment reflects continued collaboration between the parties and introduces several key updates to the agreement and Note, effective January 21, 2025.
The highlights of the amendment include the following:
The Note's maturity date has been extended to March 28, 2027, providing additional flexibility for Mustang Funding to manage its financial objectives.
The annual rate has been revised to
20% , with15% payable in cash monthly and5% deferred until maturity or earlier acceleration.
Mill City Ventures' Chief Executive Officer Douglas M. Polinsky commented, "We are pleased to extend and revise the terms of our agreement with Mustang Funding. The amendments align with our strategic objectives and reinforce our commitment to fostering mutually beneficial partnerships."
This amendment reaffirms Mill City Ventures' commitment to providing financial solutions that support the growth and stability of its partners while optimizing returns for its shareholders.
Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements, including without limitation continued demand for short-term specialty non-bank loans, the company's ability to continue growing its investment portfolio while receiving attractive returns, increased levels of competition, new products or offerings introduced by competitors, changes in the market rates of loans, and other risks.
About Mill City Ventures III, Ltd.
Founded in 2007, Mill City Ventures III, Ltd., is a short-term non-bank lending and specialty finance company. More information about the company can be obtained at www.millcityventures3.com or www.sec.gov.
Contact:
Joseph A. Geraci
Chief Financial Officer
jg@millcityventures3.com
612-868-5815
On X: @millcity_3
SOURCE: Mill City Ventures III, Ltd.
View the original press release on ACCESS Newswire
FAQ
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