June 07, 2002 10:30
MPTV to Refinance Mortgage for $9.5 M; $3 M Earmarked for Phase I
IRVINE, Calif., June 7 /PRNewswire-FirstCall/ -- MPTV, Inc. (OTC Bulletin Board: MPTT), an innovator in Timeshare Resort Development, today announced that the Company has received a commitment to refinance its current mortgage on Lake Trop for $9.5 million. $6.5 million of this funding will be used to refinance the current mortgage and the balance of $3 million will be used to commence Phase I of the Lake Trop renovations.
MPTV will refinance its $6.5 million mortgage as well as its $3 million Phase I funding at 9%, a significantly lower rate than that offered by the existing loan, resulting in improved cash flows for the Company.
"With interest rates continuing to decline, we have been evaluating various refinance options. This $9.5 million refinancing both creates significantly lower interest payments on our mortgage and gives us immediate, attractively priced funding, allowing us to commence Phase I. We anticipate that the loan will come in two tranches: $6.5 million for our refinance in June; and, within two weeks an additional $3 million for Phase I. We are very excited to be able to improve our current cash flows and the initial costs of Phase I through one financing transaction," stated Mr. Hurley Reed, President and CEO of MPTV.
"We believe that this Phase I funding is the first step in a comprehensive $100 million financing plan. We are currently in negotiations for three additional financings. Two are loan financings and the third is an equity investment. The loan financings could make available up to $100 million based upon construction schedules. One loan is a $30 million revolving facility while the second is a two-part loan beginning with a $54 million segment. Moreover, this $9.5 million refinance loan initiates the process toward a final credit facility to complete the project," concluded Mr. Reed.
MPTV has already been granted building permits for Phase I, which includes the conversion and remodeling of Lake Trop into a world-class timeshare resort.
MPTV, Inc.
MPTV develops and markets timeshare resort properties. The Company's principal asset is a multi-million dollar resort property called Lake Tropicana. MPTV's current project is the Lake Tropicana Timeshare Resort and Towers ( www.laketropmptv.com ) located in Las Vegas, Nevada between the MGM Grand Hotel/Casino and the Aladdin Hotel/Casino on the "strip" and the Hard Rock Cafe on Paradise and Harmon Avenue. The "Harmon Corridor" is undergoing transformation with two new casino hotels and three large timeshare projects planned for this area.
Shareholder Contacts: Laurel Moody, Vision Consulting, Email laurel@visioncc.net, Calls: 212-446-6109.
This press release contains forward looking statements within the meaning of the "safe-harbor" provision of the Private Securities Litigation reform Act of 1995 about the Company's financial condition and business prospects that involve substantial risks and uncertainties. You can identify these statements by the fact that they use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe" and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Among the factors that could cause actual results to differ materially are the following: failure to agree upon terms and conditions of the loan tranches; failure to meet conditions of the loan; increases in interest rates; a decline in the Las Vegas real estate market or the timeshare market in general; and general economic conditions in the United States. A further list and description of these risks, uncertainties and other matters can be found in the Company's Annual Report on Form 10-KSB for the fiscal year ended December 31, 2001 and in its periodic reports on Forms 10-QSB and 8-K (if any). These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These forward-looking statements speak only as of the date hereof. The Company disclaims any intent or obligation to update these forward-looking statements.
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SOURCE MPTV, Inc.
/CONTACT: Shareholders, Laurel Moody of Vision Consulting,
+1-212-446-6109, laurel@visioncc.net, for MPTV, Inc./
/Web site: laketropmptv.com /
(MPTT) |
