APMI is a direct lender generally on company-owned real estate to asset-based quality borrowers.  The typical loan made by APMI is secured by a first mortgage with a loan-to-value of 60%-65% of the value of the property on a vacant basis, giving no economic weight to any lease or existing occupant.  The pricing used by APMI is LIBOR + 800 bp with a LIBOR floor of 4%.  The interest rate, at this level, is slightly above the rate charged by the US Treasury to AIG.  APMI loans do not require financial covenants or junior liens on working capital collateral, which makes the program an attractive alternative to Tranche B ABL loans and mezzanine financing.

The real estate against which APMI lends is typically industrial, retail and, to a lesser extent, office.  Land, even that which may have a higher and better use than the present improvements, will NOT be considered by APMI.  Loans are made, in major or secondary markets with tertiary markets to be considered on a case by case basis.  No small towns or rural communities will be considered.  No real estate that offers sleeping accommodations will be considered, thereby eliminating all forms of housing, including hotels, nursing homes and hospitals.