Contract analysis

I. Executive Summary The purpose of this memorandum is to identify and analyze the key issues arising from the initial term sheet (the "Term Sheet") delivered by Crescent Harbor Bank, N.A. ("Crescent Harbor" or the "Arranger") on February 5, 2025, and to propose negotiation positions on behalf of our client, Nexford Industrial Holdings Inc. ("Nexford" or the "Borrower"), a portfolio company of Granite Peak Capital Pa

II. Background and Transaction Overview Borrower Nexford Industrial Holdings Inc. is a Delaware corporation headquartered at 1400 Industrial Parkway, Schaumburg, Illinois 60173. Nexford operates as a diversified industrials and specialty manufacturing platform, with operations spanning precision tooling, industrial fabrication, specialty coatings, and engineered components. The company generates approximately $2.1 bi

III. Issues List and Negotiation Analysis A. Economic Terms A.1 Interest Rate — SOFR + 400 Basis Points The Term Sheet proposes an interest rate on the Term Loan B of Term SOFR plus 400 basis points per annum, with a SOFR credit spread adjustment ("CSA") of 10 basis points for 1-month SOFR and 15 basis points for 3-month SOFR. This results in an all-in borrowing cost (before floor effects) of approximately 8.30% to 8