Knoxville, Tennessee, August 8, 2022 – Mountain Commerce Bancorp, Inc. (the “Company”) (OTCQX: MCBI), the holding company for Mountain Commerce Bank (the “Bank”), today announced that it established a senior revolving line of credit in the maximum amount of $20 million with a financial institution. This line of credit replaces the existing senior term loan with a current balance of $10 million that was due to mature on April 10, 2023.
Pursuant to the terms of the loan and security agreement, the line of credit will mature on August 1, 2025 and bear interest at a per annum rate equal to the Prime Rate in effect from time to time minus .50 percent (50 bps), subject to a floor rate of 3.50%. Interest only payments on the line of credit are due quarterly, with remaining principal amounts due at maturity. A non-use fee of .10 percent (10 bps) will be assessed if the principal amount declines below $10 million. The Company’s obligations under the line of credit are secured by a pledge of 100% of the stock of the Bank and are subject to terms and covenants similar to the existing senior term loan. The Company intends to use the available balance of the line of credit to support the operations of the Bank and for general corporate purposes.