Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 263

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 8
Chunk 263
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 customary covenants,
including financial ratios and affirmative obligations. Copies of the senior Loan Agreement, the Mezzanine Loan Amendment, and the Cash
Management Agreement are incorporated by reference to the Annual Report on Form 10-K of Portsmouth Square, Inc. for the fiscal year ended
June 30, 2025 (see Item 15(a)(3)-Exhibits.

D.
Guaranties

Under
the March 28, 2025, refinancing, all guaranties associated with the prior 2013 senior mortgage and 2019 mezzanine facilities were terminated.
The current senior mortgage and amended mezzanine facilities include customary limited non-recourse carve-out and performance undertakings
provided at the Portsmouth/operating-entity level. InterGroup is not a guarantor of the March 28, 2025, senior mortgage loan or the amended
mezzanine loan.

E.
DSCR and Lockbox Arrangements

Operating
has ongoing DSCR, cash-trap and other covenant requirements under the refinanced loans. Under the March 28, 2025 refinancing, a Cash
Management Agreement with Prime Finance (“Lender”) and Wells Fargo Bank, N.A. (“Cash Management Bank”) requires
that all Hotel cash receipts be deposited into a lender-controlled account. This lockbox arrangement remains in effect as provided in
the loan documents and related intercreditor arrangements. Funds are disbursed for approved operating expenses, debt service (including
senior interest-only), and required reserves (insurance, real estate taxes, and furniture, fixtures and equipment) in accordance with
lender-approved budgets. Excess cash, if any, is applied in accordance with the senior waterfall and intercreditor agreement, which may
limit current-pay to the mezzanine lender or upstream distributions. These cash-management provisions apply only to the Hotel’s
financing at Portsmouth’s subsidiaries; they do not restrict InterGroup’s non-Hotel properties.

F.
InterGroup Real Estate Mortgages (Non-Hotel)

During
the fiscal year ending June 30, 2025, InterGroup refinanced the mortgage on its 157-unit apartment located in Florence, Kentucky in the
amount of $9,800,000. The term of the loan is approximately 10 years with an interest rate at 5.40%. The loan matures in January 2035.
In May 2025 InterGroup amended the agreement on our St. Louis, Missouri property to new loan maturity of June 5