Mrs Peter is the owner of Cinemax Universal, a holding company for a chain of 12 movie theaters…

Mrs Peter is the owner of Cinemax Universal, a holding company for a chain of 12 movie theaters and a small TV station in New Orleans. Although the company is privately owned, Mrs Peters and Cinemax Universal have been a long-standing client of Buena Vista Broadcasting, with the relationship dating back to 1990. Mrs Peters has recently approached Buena Vista regarding her expansion efforts to purchase a 23-store commercial office building that is expected to be fully occupied (10 leases are contracted with tenants for up to five years with provisions for renewal and step-up rental income). Mrs Peters plans to operate one of the stores as both a distributor and retailer for children’s accessories, and wants to gain a direct retail license from Disney as well as a $10MM line of credit. Rent rolls on the building are expected to yield $180,000 per month. Mrs Peters also projects that distribution revenues can yield from $75,000 to $100,000 per month and retail sales of $30,000–$50,000 per month. Mrs Peter has asked for the $10MM line of credit as part of her working capital needs and says she would be willing to pledge an assignment of rental proceeds as collateral. Create a Risk Evaluation for the facility request to use in evaluating the credit-specific fundamentals of the respective credit request.







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