Company: INTG
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021858
Chunk: 53

Company: INTERGROUP CORP
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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 with (i) the senior mortgage lender,
which required a 10% principal paydown ($8.59 million), a 1% forbearance fee ($0.86 million), and a 4% default interest accrual; and
(ii) the mezzanine lender, which advanced $4.5 million toward the senior paydown, charged a 1% forbearance fee ($0.245 million), and
also accrued default interest at 4%. The senior lender issued a Notice of Termination on January 3, 2025, and the mezzanine lender issued
a Notice of Default on January 14, 2025.

    -18-

The
prior facilities were fully retired upon refinancing on March 28, 2025 (see Section C). In connection with the March 28, 2025 refinancing
and mezzanine extinguishment, the Company recognized a gain of approximately $1.416 million for the quarter ended March 31, 2025, primarily
related to the mezzanine lender’s forgiveness of accrued default interest and the forbearance fee. The senior facility’s
accrued default interest and forbearance fee were paid at refinancing, and the credit facility was retired.

C.
Refinancing Completed March 28, 2025 (Current Facilities)

On
March 28, 2025, the Company refinanced the senior mortgage and modified the mezzanine loan, fully retiring the prior facility.

●Senior
                                            Mortgage (Prime Finance): Operating entered into a $67,000,000 Mortgage Loan Agreement with
                                            Prime Finance (“Prime”). Interest is Term SOFR + 4.75% with a SOFR cap of 4.50%.
                                            The loan is interest-only through maturity; initial term to April 9, 2027, with three one-year
                                            extension options subject to satisfaction of specified financial and operational covenants.
                                            An interest-rate cap (notional equal to or greater than the outstanding principal) was purchased
                                            at inception (premium approximately $136,000). The loan is secured by the Hilton San Francisco
                                            Financial District (the “Hotel”).

●Mezzanine
                                            Loan (CRED REIT Holdco LLC): Mezzanine executed a new Mezzanine Loan Agreement for $36,300,000
                                            at a fixed 7.25% rate, with maturity and potential extension terms matching the senior loan.
                                            The Mezzanine loan is