FACTORY STORES OF AMERICA, INC. ANNOUNCES $95 MILLION COLLATERALIZED COMMERCIAL MORTGAGE NOTES.SMITHFIELD, N.C.--(BUSINESS WIRE)--May 16, 1995--Factory Stores of America, Inc. (NYSE NYSE See: New York Stock Exchange :FAC FAC - Functional Array Calculator. An APL-like language, but purely functional and lazy. It allows infinite arrays. ["FAC: A Functional APL Language", H.-C. Tu and A.J. Perlis, IEEE Trans Soft Eng 3(1):36-45 (Jan 1986)]. ), the nation's largest owner and operator of factory outlet centers, today announced the completion of a $95 million rated debt securitization by FSA FSA Financial Services Authority FSA Food Standards Agency (UK) FSA Farm Service Agency (USDA) FSA Financial Services Agency (Japan) Finance, Inc., its 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. . The total offering of $95 million was issued in three tranches of fixed-rate collateralized commercial mortgage notes with each tranche rated by Standard & Poor's Rating Group and Fitch Investors Service Fitch Investors Service A financial services company best known for the bond ratings it provides investors. , L.P. The three tranches consist of $58 million of Class A Notes rated "AA;" $20 million of Class B Notes rated "A;" and $17 million of Class C Notes rated "BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. ." Interest on the Class A Notes, Class B Notes and Class C Notes will be payable monthly at rates per annum Per annum Yearly. equal to 7.42% (the Class A Interest Rate), 7.78% (the Class B Interest Rate) and 8.31% (the Class C Interest Rate), respectively, for an all-in blended interest rate of 7.75%, inclusive of certain ongoing fees. The Company will use the proceeds to repay a $70 million interim mortgage loan from The Travelers Insurance Company and other outstanding borrowings, to finance certain ongoing expansion projects and to pay certain expenses related to the issuance and sale of the Notes. The Notes are secured by a cross-collateralized mortgage which covers 18 factory outlet centers located in Arizona (3), California, Illinois, Kentucky (2), Louisiana (2), Maine, Nevada, New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). , New York, Tennessee (2), Texas, Utah and Washington, and containing an aggregate of approximately 2.2 million square feet of gross leasable area Gross leasable area (GLA) in the retail development industry is a term applied to shopping malls, lifestyle centers, outlet malls and other retail centers to indicate the amount of floor space available to be rented. (GLA). David A. Hodson, president and chief financial officer, said, "We are extremely pleased with the rates we received on the first rated debt securitization for the outlet industry. The all-in blended rate of 7.75% provides the Company the opportunity to convert a substantial portion of its debt to a long-term fixed rate at an annual interest rate savings of approximately 120 basis points." The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws and, unless so registered, may not be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The Notes are being offered and sold only (A) in the U.S. to qualified institutional buyers within the meaning of Rule 144A under the Securities act, (B) to a limited number of institutional "accredited investors" (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act) and (C) pursuant to offers and sales that occur outside the U.S. to non-U.S. persons within the meaning of Regulation S under the Securities Act. Factory Stores of America, Inc. is a real estate investment trust and is the nation's largest owner and operator of factory outlet centers. The Company owns and operates 35 centers in 21 states, containing approximately 4.3 million square feet of GLA. CONTACT: Factory Stores of America, Smithfield David A. Hodson, 919/934-9446 |
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