Company: INTG
Filing Date: 2025-03-31
Form Type: 8-K
Source: 0001641172-25-001357
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Company: INTERGROUP CORP
Filing Date: 2025-03-31
Form: 8-K
Item: Item 1.01
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Item 1.01      Entry into a Material  

On
March 28, 2025, Justice Operating Company, LLC (“ Justice” or “ Borrower”), a subsidiary of Portsmouth Square,
Inc. (“ Portsmouth”), a subsidiary of The InterGroup Corporation (the “ Issuer” or the “ Company”) completed
the refinancing of its principal asset, the Hilton San Francisco Financial District hotel (the “ Property”). In connection
with this refinancing, the Borrower entered into a Mortgage Loan Agreement (the “ Mortgage Loan Agreement”) with PRIME Finance
(the “ Mortgage Lender”) in the principal amount of $67,000,000. The Mortgage Loan bears interest at a floating rate equal
to the 30-day Secured Overnight Financing Rate (“ SOFR”) plus 4.80%. To mitigate interest rate exposure, the Borrower purchased
an interest rate cap effective on the closing date with a notional amount not less than the Mortgage Loan amount, limiting Term SOFR
to a maximum of 4.50%. The Mortgage Loan is secured by the Property.

Additionally,
Justice Mezzanine Company, a subsidiary of the Company (“ Mezzanine Borrower”), executed a modification of its existing Mezzanine
Loan Agreement (the “ Mezzanine Loan Agreement,” and collectively with the Mortgage Loan Agreement, the “ Loan Agreements”)
with CRED REIT Holdco LLC (the “ Mezzanine Lender,” and collectively with the Mortgage Lender, the “ Lenders”).
The Mezzanine Loan Agreement provides for a mezzanine loan in the principal amount of $36,300,000 at a fixed interest rate of 7.25% per
annum.

Both
Loan Agreements have an initial maturity of two years from the closing date, with the Borrower possessing three successive one-year extension
options, subject to compliance with certain conditions set forth in the Loan Agreements.

The
foregoing description of the Loan Agreements does not purport to be complete and is qualified in its entirety by reference to the full
text of such agreements, which the Company intends to file as exhibits to its next applicable periodic report under the Securities Exchange
Act of 1934, as amended.