EXHIBIT 10.51
[LETTERHEAD]
February 3, 1998
Xx. Xxxxxx X. Xxxxxx
Chief Financial Officer
Shells Seafood Restaurant, Inc.
00000 Xxxxx Xxxx Xxxxx
Xxxxx 000
Xxxxx, Xxxxxxx 00000
Dear Xxxxxx:
We are pleased to provide you with the following Term Sheet for Shells Seafood
Restaurants, Inc. ("Borrower") based on the following terms and conditions:
Borrower: Shells Seafood Restaurants, Inc. ("Borrower")
Loan Amount: Up to One Million Dollars ($1,000,000). Loan amount will be
limited to the lessor of 75% if MAI appraised value or cost
Rate: Wall Street Journal Prime Rate minus 1/2%, floating. During
the life of the loan the Borrower has the option to fix the
rate at "Prime" for a 12 month period.
Repayment
Terms: Thirty-Six (36) monthly payments of principal plus interest
based on a 15-year amortization. Amortization is as follows:
Year One $3,000 Monthly Principal
Year Two $3,500 Monthly Principal
Year Three $4,000 Monthly Principal
Collateral: A first real estate mortgage on the property located at
0000 Xxxx 00xx Xxxxxx, Xxxxxxxxxxxx, Xxxxxxx 00000. Loan
will be cross-collateralized with all other Manufacturers
Bank of Florida loans currently outstanding.
Fees: A 1/2% facility fee will be due from the Borrower upon
acceptance of the loan commitment.
Financial
Covenants: The Loan Agreement will include covenants customarily found
in loan agreements for similar transactions and any
additional covenants to the context of the proposed
transaction. Specific financial covenants will include:
1) Total Liabilities/Tangible Net Worth less than 2.0 to
1.0.
2) Earnings before Interest, Taxes, Depreciation and
Amortization. (EBITDA)/Current Maturities Long Term
Debt (CMLTD) plus Interest Expense greater than 2.0
to 1.0.
3) Xxxxxxxx agrees to maintain a minimum of $750,000 in
average balances with Manufacturers Bank of Florida.
Xx. Xxxxxx X. Xxxxxx
February 3, 1998
Page Two
Xxxxxxxx agrees to pay all reasonable closing costs associated with the above
loan including, but not limited to attorney fees, underwriting/due diligence
costs, appraisal fees, documentation stamps, intangible tax and recording fees.
Please indicate your acceptance of the above terms and conditions contained
herein by signing below and returning one copy of this Term Sheet to the
undersigned.
We look forward to discussing this credit facility in further detail at your
earliest convenience.
Sincerely,
/s/XXXXXX X. XXXXXXXX /s/XXXXXX X. XXXXXX
-------------------------- ---------------------------
Sr. Vice President Sr. Vice President
ACCEPTANCE OF TERM SHEET
The above terms and conditions are accepted and agreed to this____________ day
of February 1998.
"BORROWER"
SHELLS SEAFOOD RESTAURANTS, INC.
By:
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Xxxxxx X. Xxxxxx
Its:
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