Stewards executed a multi-part financing plan, refinancing its Block 40 / 1818 Park property while raising capital for its HOPCo transaction. The company closed a $69 million senior secured mortgage at Term SOFR plus 3.50% (stepping to 3.00%) and a concurrent $10 million mezzanine loan with rate floors of 14.5% pre-margin change and 14.0% thereafter, both maturing Aug. 7, 2028 with extension options. Stewards also issued $5 million of 15% secured convertible notes with $3.00 exercise-price warrants to fund HOPCo-related payments and corporate uses. In parallel, it funded the first $5 million of an up to $25 million, 8% PIK HOPCo convertible note that may convert to equity if a larger investment does not close by Oct. 31, 2026.
Agreement 1: Stewards Refinances Block 40 With $69 Million Senior Loan From VMC CRE at SOFR+350 bps
- Agreement type: Senior secured mortgage loan
- Counterparty: VMC CRE Master Lending Upper REIT
- Signed / Effective: Jul 24 2026 / Jul 24 2026
- Duration / Termination: Through Aug 07 2028, plus three 1-year extensions
- Reason: Refinance Block 40 and extend maturities
Agreement 2: Stewards Adds $10 Million Mezzanine Loan on Block 40; Rate Floor 14.5% Pre-Margin Change
- Agreement type: Mezzanine loan secured by equity pledge
- Counterparty: 1818 Mezz Lender
- Signed / Effective: Jul 24 2026 / Jul 24 2026
- Duration / Termination: Through Aug 07 2028, plus three 1-year extensions (subject to conditions)
- Reason: Optimize Block 40 capital stack
Agreement 3: Stewards Raises $5 Million 15% Secured Convertible Notes With $3.00 Warrants for HOPCo Funding
- Agreement type: Secured convertible notes and warrants
- Counterparty: Accredited investors
- Signed / Effective: Jul 27 2026 / Jul 27 2026
- Duration / Termination: 180 days to maturity
- Reason: Finance HOPCo payments and corporate needs
Agreement 4: Stewards Funds First $5 Million of Up to $25 Million 8% PIK HOPCo Convertible Note
- Agreement type: Convertible promissory note investment
- Counterparty: HOPCo
- Signed / Effective: Jul 27 2026 / Jul 27 2026
- Duration / Termination: Through Jul 27 2031
- Reason: Bridge financing toward planned HOPCo equity investment
Original SEC Filing:
This is an AI-powered summary. It may contain inaccuracies. Consider verifying important information with the source. Please note this summary is solely based on documents filed with the SEC.