CharterMac Completes Low-Income Housing Tax Credit Benefit Guarantee Transaction.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 -- CharterMac (the "Company") (AMEX AMEX See: American Stock Exchange :CHC CHC Chicago Cubs CHC Community Health Center CHC Chestnut Hill College (Philadelphia, Pennsylvania) CHC Congressional Hispanic Caucus CHC Community Health Council (UK National Health Service) ) today announced that its subsidiary has closed a transaction to guarantee tax benefits to an investor in a partnership designed to generate Georgia State low-income housing tax credits ("LIHTCs"). An investment grade financial institution (the "Primary Guarantor") has guaranteed an agreed upon Adj. 1. agreed upon - constituted or contracted by stipulation or agreement; "stipulatory obligations" stipulatory noncontroversial, uncontroversial - not likely to arouse controversy internal rate of return to the investor in Related Capital Guaranteed Corporate Partners II, L.P. - Series E ("RCGCP"). CharterMac Corporation ("CM Corp."), CharterMac's wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , has agreed to back-up the guarantee, and CM Corp. will participate in the guarantee fees received by the Primary Guarantor. RCGCP is a fund sponsored by another of CharterMac's subsidiaries, Related Capital Company ("RCC RCC - An extensible language. "). The investor in RCGCP will be allocated Georgia State LIHTCs and other tax benefits in return for investing approximately $11.1 million to fund, in part, the development and ownership of five multifamily properties. Funds sponsored by RCC have acquired substantially all of the other limited partnership interests in the owners of these five properties and will be allocated substantially all of the LIHTCs generated by these properties. "This guaranteed transaction represents the first guaranteed Georgia State credit fund that RCC has ever closed and is also a uniquely structured deal for the Company from an ownership and credit allocation perspective," said Marc D. Schnitzer, President of CharterMac. "In addition, guaranteed transactions such as these continue to produce a very attractive return on CharterMac's equity, while providing RCC with fund management fees for sponsoring the fund." About the Company CharterMac, through its subsidiaries, is the nation's leading financial services provider to the multifamily housing industry. CharterMac offers capital solutions to developers and owners of multifamily rental housing throughout the country and quality investment products to institutional and retail investors. For more information, please visit CharterMac's website at www.chartermac.com or contact the Shareholder Services Department directly at (800) 831-4826. Certain statements in this press release may constitute forward-looking statements within the meaning of the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are detailed in CharterMac's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the period ended December 31, 2003, and in its other filings with the Securities and Exchange Commission. Such forward-looking statements speak only as of the date of this press release. CharterMac expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in CharterMac's expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based. |
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