Bank of Boston arranges and underwrites $556 million WCI acquisition; Engineers largest private real estate transaction in bank's history.BOSTON--(BUSINESS WIRE)--July 26, 1995--Bank of Boston Corp. today announced the completion of a structured debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay for the sale of Westinghouse Communities Inc., a unit of Westinghouse Electric Corp. to an investor group led by Don E. Ackerman and Al Hoffman Al Hoffman (September 25 1902–July 21 1960) is a member of the Songwriter's Hall Of Fame since 1984. He was a hit songwriter active in the 1930s, 40s and 50s, usually co-writing with others and responsible for many number one hits through each decade, many of which are still , which will operate as WCI Communities WCI Communities, Inc. is a homebuilding company in the United States that provides design, construction, financing, land purchases, marketing, and community management. WCI is based in Bonita Springs, Florida and had about 2,900 employees until 2006 when a building recession , L.P. In a collaborative effort, the bank's Corporate Finance and Real Estate departments delivered a complex $380 million financial solution to WCI Communities, L.P. which entailed underwriting a $150 million syndicated loan Syndicated Loan A very large loan in which a group of banks work together to provide funds for one borrower. There is usually one lead bank that takes a small percentage of the loan and syndicates the rest to other banks. Notes: Also known as a "syndicated bank facility. in the form of senior secured facilities and arranging $155 million in a mezzanine debt placement and approximately $75 million in senior construction loans. "The fact that we provided the entire debt capital structure for this transaction really underscores our pursuit of addressing our clients needs with sophisticated solutions in the capital markets," said Chad Gifford, president of Bank of Boston. "We provide more than just financing -- we build relationships -- and we have the capabilities, expertise and the necessary capital for bringing a range of services and solutions to respond to all of our corporate clients financial and strategic needs." "As a trusted financial advisor to the client, we crafted and executed a series of solutions that utilize the underlying high quality of these real estate assets," said Rusty Aertsen, Bank of Boston's Group Executive for Real Estate and Global Capital Markets. "This facility assures investors at each level of the capital structure with an appropriate risk/reward profile to meet their respective investment criteria," added Aertsen. WCI Communities L.P. is one of the premier community development companies in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , developing master-planned, full- service residential communities. Their property portfolio is geographically diverse with communities located in Florida, Arizona and California. Corporate Finance provides capital markets solutions for large and mid-sized companies in industries such as media and communications, energy and utilities, transportation, environmental services, real estate, high technology and financial institutions. Through July of 1995, the 50-person department placed, sold, arranged and/or underwrote 70 transactions totaling $5 billion in financing. Bank of Boston Corp. (NYSE NYSE See: New York Stock Exchange : BKB BKB Basler Kantonalbank (Switzerland) BKB Black King Bar (gaming weapon) BKB BV Kwaliteitsverklaringen Bouw (Dutch) BKB BankBoston Corporation ), is the first-chartered bank in the United States and with assets of $45.3 billion as of June 30, 1995, one of the top 20 banks in the nation. New England's only global bank, Bank of Boston offers comprehensive personal, corporate and global banking through a network of 500 offices across the United States and through more than 100 offices in 23 countries around the world, the third largest overseas network of any U.S. bank. The corporation's common and preferred stocks are listed on the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Boston stock exchanges. CONTACT: Bank of Boston Edward J. Russell, 617/434-6883 |
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