Trader56 is right: the loan is NOT a 3.5% fixed rate. It is LIBOR + 3%. So if inflation kicked off five years from now and the LIBOR rate was at 6%, we would have the loan ratched up to 9%.
Maybe it's not a risk in this deflationary low inflation environment, but it's a risk going forward. And it is a 12 year loan after all, so believing we will have inflation sometime within 12 years is not a stretch.
GBG Price at posting:
$1.30 Sentiment: None Disclosure: Not Held
