Open Market Repurchase of Series B Notes.
On any date up to and including December 31, 2022, Section 3.3 of the Indenture permits the Company to repurchase Series A and/or Series B Notes in the open market so long as the Company maintains its Minimum Cash Balance. Pursuant to that resolution, the Company repurchased a $5,500,000 in face amount of the Series B Notes. These Series B Notes will be delivered to U.S. Bank, as Trustee under the Indenture, for cancellation.
December 2022 Interest Payments
On December 9, 2022, the Company notified U.S. Bank National Association, as Trustee under the Indenture, that it will cash pay 100 percent of the Series A Note interest payable for the 6-month period ending December 31, 2022.
With respect to the Series B Note interest, the Company notified the Trustee that it will pay PIK Interest (in lieu of cash payment) on 100 percent of the Series B Notes outstanding for the 6-month period ending December 31, 2022. The Company anticipates the PIK interest portion of the Series B Note payment will equal $2,502,901.
After the December 31, 2022 interest payment date, the outstanding principal amount of the Series A Notes is anticipated to be $54,828,153. Following the cancellation of the Series B Notes repurchased by the Company, the outstanding principal amount of the Series B Notes is anticipated to be $68,321,863, the latter of which accounts for both the payment of PIK Interest on December 31, 2022, and the retirement of the Series B Notes repurchased on December 9, 2022.
Minimum Cash Balance
As of December 15, 2022, the cash balance of the Company was $6,539,600. As approved by the Board, the Company’s Minimum Cash Balance was $3,500,000, plus the difference between the amount authorized by the Lamington Board to make open market purchases of the Series B Notes and the final purchase price of all open market purchases of Series B Notes.