Can someone translate these lending terms?

[Matthew Otero]

I was wondering if anyone could break down an email I received from a commercial lender at a local bank. We asked about a business line of credit of possibly putting up some properties as collateral or maybe refinancing. I’ll paste the response and hopefully someone could explain it in layman’s terms.

“The bank would look at advancing on investment properties, based on typical 20-25 year terms, depending on age/condition of property. The bank on the commercial side would be repricing at each 5 year anniversary (true 20/25 year maturity), based on the 5 year treasury plus a margin that would be assigned at closing. The rate would be dependent on overall financial strength of the borrowing entity/guarantors. We would be looking for coverage of at least 1.2x. Advance rates would typically be around 75%, but we have gone up to 80%. Properties held for more than 1 year would be advanced based on current market value, and properties held under one year would be advanced based on the lower of cost or appraised value, whichever is less.”