Calculate the maximum amount of loan proceeds available under the Manitoba National Bank (MNB) secured term loan, given the terms and conditions listed in Appendix II.

  

Appendix II Financing proposals Proposal 1: MNB secured term loan In addition to the existing line of credit, MNB has offered a term loan for up to $40 million (provided maximum limits and covenants are met) with the following terms and conditions: five-year term loan 7% interest rate, payable annually maximum loan proceeds available: up to 50% net book value of property, plant, and equipment equal annual instalments of principal repayment of $7,000,000 due at end of each year first charge on all capital assets including land, building, and equipment Negative covenants for the credit line and the term loan facilities together: maximum debt leverage of 3.0:1 of EBITDA - defined as [(line of credit + secured term loan) / EBITDA] minimum debt service charge ratio of 1.8:1 defined as [EBITDA / (interest + annual principal repayment)] Proposal 2: Hudson Bay Teachers' Union Pension Fund convertible bonds The Hudson Bay Teachers' Union Pension Fund (HBT) is interested in lending to Agri-Panel using convertible bonds. HBT has many investments in companies that process natural resources and is particularly interested in Agri-Panel's unique product. HBT believes that there is a large untapped global market for this process that uses crop waste. The convertible bonds (amount: $35,000,000) have the following terms and conditions: unsecured debentures 3% interest rate, payable annually five-year term no annual principal repayments - all principal ($35,000,000) is due June 30, 2026 convertible at the holder's option into 20 shares per $1,000 any time after July 1, 2023