A question!

If I add the current one year Libor rate to the over Libor rate quoted, the result is an interest rate of 10.25%. In light of current interest rates, this seems to be extremely punitive. Is the high differential predicated on an assesment of high credit risk? Or is the rate fixed for the term of the loan? And if so, what is the duration of the loan? Finally, even this rate is absolutely cheap compared to that which Connacher is paying!

Brian