Crescent Real Estate Equities Inc. announces $400 million long-term financing.NEW YORK--(BUSINESS WIRE)--Aug. 10, 1995--Crescent Real Estate Equities, Inc. (NYSE NYSE See: New York Stock Exchange :CEI CEI Competitive Enterprise Institute CEI Conferenza Episcopale Italiana (Italian bishop conference) CEI Central European Initiative CEI Comitato Elettrotecnico Italiano (Italian Electrotechnical Committee) ) today announced that it has entered into a loan commitment for a $400 million long-term financing Long-term financing Liabilities repayable in more than one year plus equity. arrangement with Nomura Asset Capital Corporation (Nomura). Under the terms of the financing, Nomura has agreed to fund a $239 million loan bearing interest at 7.83 percent. This initial loan will have a 12 year term with an initial seven year interest- only period, followed by five years of principal amortization based on a 25 year schedule. The proceeds of the initial loan will be used substantially to repay borrowings under Crescent's acquisition credit facility. Nomura will also provide a second $161 million loan bearing interest at 7.75 percent. The second loan will have a 10 year term with an initial seven year interest-only period, followed by three years of principal amortization based on a 25 year schedule. Proceeds of the second loan can be drawn through February 1996 as collateral is added to the second loan and will be used to finance future acquisitions. "This financing arrangement culminates a detailed evaluation of a substantial number of financing alternatives which were available to Crescent crescent, emblematic representation of the quarter moon. The crescent and star, ancient Byzantine symbols that became the emblems of Constantinople, were also assumed as the standard of the Ottoman Turks. . We saw a unique window of opportunity in the secured financing market given the historically low long-term interest rates as well as a tremendous amount of liquidity in the marketplace which had created very competitive financing terms. As a result, we were able to maximize the term of our financing, as well as minimize our debt cost in terms of both yield and amortization," stated John Goff
John William Goff (January 1 1848 - November 9 1924) was an Irish-born lawyer and judge also noted for his support of Fenian rebel movements. , chief executive officer. "The $161 million of proceeds from the second loan coupled with our acquisition credit facility will provide us over $300 million of buying power Buying Power The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available. Also referred to as "Excess Equity. to continue our acquisition plan at very attractive financing rates." The closing of the first loan is scheduled to occur in August. The initial closing under the second loan is scheduled for the first half of September, with subsequent closings to take place as additional collateral is added to the second loan. The closings under both loans are also subject to the completion of customary documentation and due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. and the satisfaction of customary closing conditions. Crescent is a real estate investment trust which owns a portfolio of real estate assets, including 25 office properties and two retail centers totaling 7.1 million square feet, two hotels totaling 908 rooms and economic interests in four single family residential land developments. The rental properties are located in 12 metropolitan submarkets in Texas, Colorado and Arizona. Crescent is a fully integrated real estate company that provides management and leasing services with respect to its rental properties. CONTACT: Crescent Real Estate Equities Inc., 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 Dallas E. Lucas, chief financial officer, 212/836-4216 |
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