Firm closes $27m in loans.In an exciting financial transaction that will assist in the completion of a large-scale renovation of the Kauai Coconut Beach Resort in Hawaii, Ramsfield Hospitality Finance announced the closing of two loans totaling $26.75 million. The loan proceeds will replace the owner's existing mortgage and finance the final stages of the property's transition into a Courtyard by Marriott Courtyard by Marriott is a brand of hotels owned by Marriott International. They have over 2,800 hotels worldwide, as of June 2007. Courtyard by Marriott is designed for business travelers. resort.RHF RHF Rec.humor.funny (newsgroup) RHF Restricted Hartree-Fock RHF Royal Highland Fusiliers RHF Retirement Housing Foundation (Long Beach, California) RHF Right Heart Failure (medical) provided both a primary mortgage, of $19.5 million, and a $7.25 million mezzanine loan A mezzanine loan is a relatively large loan, typically unsecured (ie., not backed by a pledging of assets) or with a deeply subordinated security structure (e.g., third lien on the property but non-recourse vis-a-vis the borrower). . The financing package will enable the hotel's owner/ operator, Presidio Hotel Group ("PHG") of Fairfield, California Fairfield is a city located in the northeastern portion of the San Francisco Bay Area in Northern California, USA. It is the 239th largest city in the United States. It is approximately 40 miles from both San Francisco and Sacramento, approximately 30 miles from Oakland, and less , to complete renovations and upgrades to the 312-room oceanfront hotel. The first mortgage, which RHF intends to sell a senior participation interest at a later date, carries a floating interest rate above 30-day LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). , 25-year amortization period and a maturity of four years. The mezzanine financing Mezzanine Financing A hybrid of debt and equity financing. Mezzanine financing is typically used to finance the expansion of existing companies, and it is basically debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the carries a floating interest rate above 30-day LIBOR, but is an interest only. "This transaction represents several 'firsts' for our firm--the first time we've provided first mortgage financing, as we typically handle mezzanine loans, and the first Hawaiian property the company has financed," explained RHF's President Richard Mandel. "We are extremely bullish on the Hawaiian market, due to its tremendous draw as a key hospitality and tourism destination." PHG will remain the owner/operator under its agreement with Marriott. RHF Senior Executive Erik Warner added, "Not only is this a high demand market with no anticipated new supply and few internationally known franchises, but the Marriott brand will allow the resort to tap into one of the most popular and efficient reservation systems in the world. These considerations and the low cost basis for the hotel construction, made this an ideal transaction for RHF." |
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