Mirador Project bond payment to be made under forbearance agreement

By Caroline Salls

Pittsburgh, May 13 – The indenture trustee for the Mirador Project’s Tarrant County Cultural Education Facilities Finance Corp.’s retirement facility revenue bonds entered into a forbearance agreement with bond borrower SQLC Senior Living Center at Corpus Christi, Inc., which borrowed the bond funds to finance the development of the Mirador facility, according to a notice released Friday.

In exchange for trustee UMB Bank, NA’s agreement not to exercise remedies against the borrower or the facility, borrower sponsor Senior Quality Lifestyles Corp. agreed to make the $2.83 million payment due May 15 on the bonds.

Because making the interest payment is viewed as an additional contribution to the borrower, the sponsor has documented the capital contribution as a loan in the form of a series 2010C note.

Under the forbearance agreement, the trustee and the borrower agreed that payment distributions to UMB from the borrower on any restructured bonds will be shared 80%/20% between the holders of those bonds and the sponsor, with 80% of the revenue going to repay restructured bond debt and 20% to be made available to pay the sponsor for the May interest payment.

The forbearance agreement is scheduled to expire on Aug. 1.

UMB said the agreement is designed to give the borrower the opportunity to develop a framework for a comprehensive financial restructuring of the bonds before the Nov. 15 maturity of $8.8 million of the series 2010B-1 bonds.

Mirador is a senior living community in Corpus Christi, Texas.

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