An international oil major is planning to set up a crude oil refinery project in an emerging Asian country. It is planning to set up the refinery using project finance loan.

Tabulated below is a summary of key financing terms of a petroleum refinery

SUMMARY OF FINANCING TERMS OF A PETROLEUM REFINARY (TERMSHEET)
Borrower	:	Refinery Co. Pte Ltd, a limited-liability company
Lenders	:	ABC Bank; and ADB Bank
Loan Amount	:	USD50 Million Project Finance Loan
Purpose	:	To finance the building and construction of a petroleum refinery
Final Maturity	:	5 years from the date of full loan drawdown with 5 equal yearly instalments
Repayment	:	Loan to be fully repaid in 5 equal annual instalment
Interest margin		6-month LIBOR + 5% p.a.
Mandatory Prepayment	:	The Borrower to apply 60% of any Excess Cash in any year to prepay the loan
Securities / Collaterals	:	Standard securities and collaterals including but not limited to the followings: Mortgage over plant and equipment Charge over account (including revenue proceeds) Assignment overall project contracts and agreement
Financial Covenants	:	Debt Service Cover Ratio (DSCR) must be at least 1.15x (times) at all times.
Event of Default (EOD)	:	Standard Event of Default including, but not limited to the followings: Non-payment of scheduled principal and interest payment; Cessation of business ; Nationalisation of project asset by host country; Breach of financial covenant In the event of EOD outstanding, Lenders may, declare all or part of loan amount outstanding to be immediately due and payable enforce any or all security created in favour of the lenders

If the petroleum refinery project generates Excess Cash of US$10 million in year 2, calculate the ending project finance loan principal outstanding at the end of year 2 following scheduled loan repayment and Mandatory Prepayment. Show your computation.