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CH Capital Morgan Stanley Rate Sheet - 1.21

This document summarizes Morgan Stanley's SBA 504 First Mortgage Program managed by CH Capital Partners. It provides details on interest rate indexes and par spreads, prepayment penalty options that impact pricing, and an example premium calculation for a $1 million loan with a 10-year swap rate plus 4.4% interest rate and a 10% declining prepayment penalty. Contact information is provided for additional questions.

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sokcordell69
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234 views1 page

CH Capital Morgan Stanley Rate Sheet - 1.21

This document summarizes Morgan Stanley's SBA 504 First Mortgage Program managed by CH Capital Partners. It provides details on interest rate indexes and par spreads, prepayment penalty options that impact pricing, and an example premium calculation for a $1 million loan with a 10-year swap rate plus 4.4% interest rate and a 10% declining prepayment penalty. Contact information is provided for additional questions.

Uploaded by

sokcordell69
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Morgan Stanley SBA 504 First Mortgage Program

MANAGED BY CH Capital Partners, LLC


PRODUCT OPTIONS AVAILABLE: Up to 25-year term amortization with rates reset at 3,5, or 10 years 20 year fixed rate PRICING DATE: 1/21/2011

INTEREST RATE INDEXES


3-Year SWAP 1.336% Interest Rate Index 3 Year SWAP Rate 5 Year SWAP Rate 10 Year SWAP Rate 20 Year SWAP Rate
o o o

5-Year Swap 2.259%

10-Year SWAP 3.521% Spread 3.25% 3.25% 3.40% 3.40%

20-Year SWAP 4.209% SWAP 1.336% 2.259% 3.521% 4.209% PAR 4.586% 5.509% 6.921% 7.609%

INTEREST RATE PAR SPREADS


Reset Frequency Every 3 years Every 5 years 10 years followed by every 5 years Fixed

Each .25% above the par rate earns 1% Swap rates are published under Libor Swaps (USD) at http://online.wsj.com/mdc/public/page/2 3020-moneyrate.html The initial rate will be the interest rate floor.

PREPAYMENT PENALTY OPTIONS (PREMIUM IMPACT)


Prepayment Penalty Declining 5%,4,3,2,1% Flat 5% for first 5 years Declining 7%,6,5,4,3,2,1% Flat 5% for years 1-6, declining 4%,3,2,1% for years 7-10 Declining 10%,9,8,7,6,5,4,3,2,1% Flat 10% for first 10 years
o o o

3 and 5 year resets Required .50% .75% 1.00% 1.50% 2.50%

10 year reset and fixed Not Available Required .25% .50% 1.00% 1.50%

Borrower may make additional principal reductions without penalty up to 20% of the original note balance annually. The referring lender retains any origination fee. However, Morgan Stanley will keep .50% to pay the SBA fee if applicable. Lenders who fund at least $5 million in a calendar year will receive an annual volume incentive.

PREMIUM EXAMPLE FOR $1 MILLION SBA 504 FIRST MORTGAGE LOAN Description Option Interest Rate 10-year SWAP + 4.40% Prepayment Penalty 10%,9,8,7,6,5,4,3,2,1% Total Premium
Miscellaneous o The premium cannot exceed the first years prepayment percentage (%) o A 365/360 rate accrual basis is required. The premium will be reduced by .50% if another basis is used.

Premium 4.00% 1.00% 5.00%

For more information please contact: Sok Cordell, Sr. Managing Director at [email protected] or (503) 640-5200

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