Company: CMCT
Filing Date: 2025-04-09
Form Type: 8-K
Source: 0000908311-25-000023
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Company: Creative Media & Community Trust Corp
Filing Date: 2025-04-09
Form: 8-K
Item: Item 1.01
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Item 1.01 Entry into a Material Definitive Agreement

On April 3, 2025, Comerica Bank (the “ Lender”) originated a first lien mortgage loan of up to $35.5 million (the “ Mortgage Loan”) to CIM Urban REIT Properties IX, L. P. (the “ Borrower”) (the “ New Loan Agreement”), which is a subsidiary of Creative Media & Community Trust Corporation (the “ Company”) managed on a day-to-day basis by affiliates of CIM Group Management, LLC. The Mortgage Loan is secured by, among other things, a first priority deed of trust and security agreement on the Borrower’s fee simple interest in Penn Field, an office campus located at 3601 S. Congress Avenue, Austin, Texas (the “ Property”).

The Mortgage Loan consists of (a) a $32.0 million closing day advance that was or will be used by the Company for general corporate purposes and to paydown existing debt in the amount of $15.0 million under the Company’s Amended and Restated Credit Agreement, dated as of December 16, 2022 by and among the borrowers party thereto, the lenders party thereto and JPMorgan Chase Bank, N. A., as administrative agent (the “ Existing Credit Agreement”), and to pay certain of the fees and expenses incurred in connection with the entry of the New Loan Agreement, and (b) a future advance component of up to $3.5 million to fund future tenant allowance costs in connection with a new lease that is expected to be entered into for a portion of the Property.

In connection with entry into the New Loan Agreement, the Company repaid in full the outstanding obligations under the Existing Credit Agreement and terminated the Existing Credit Agreement.

The Mortgage Loan is a floating-rate, partially amortizing (with a required principal repayment of $50,000 each month), non-recourse loan with a three-year term ending on April 3, 2028, with the Borrower having the right to extend the term for up to two years upon the satisfaction of certain customary conditions. The Mortgage Loan has an interest rate of one-month Term SOFR plus 2.95%.

The Mortgage Loan may be prepaid in whole, or in part, as provided in the New Loan Agreement, at any time and without penalty other than the payment by Borrower of any Term SOFR breakage costs.

In connection with the New Loan Agreement, the Company (as the guarantor) delivered a customary non-recourse