ValueXpress closed a $2,500,000 first mortgage loan consisting of $2 million to pay off of an existing $7.4-million loan at a discount and a $500,000-renovation holdback. The loan is secured by 8 KFC restaurants. The loan resulted in forgiveness of over $6 million in debt for the borrower. Although the forgiveness of debt creates a large tax liability for the guarantor, President Obama’s stimulus packages provided a provision to allow the taxes on forgiveness of debt to be paid over an extended period. The 20-year loan was structured with a renovation holdback that will be utilized to upgrade the restaurants to the most recent KFC brand standards. The restaurants range from 1,600 square feet to 3,800 square feet and are located in Ohio and western Pennsylvania.
You are here: Home / Recent Closings / ValueXpress Provides $2.5-Million Loan for the Refinance of 8 KFC Restaurants at a Discount of over $6 Million