Price is right at Gramercy Capital.Gramercy Capital Corp. has reached agreement to modify its $500 million secured repurchase facility with Wachovia Securities Wachovia Securities, located in Richmond, Virginia (soon to be moved to St. Louis), is the third largest brokerage firm in the United States as of 2006 with $689 billion retail client assets under management. It is a subsidiary of Wachovia Corporation. , LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , and its $200 million secured repurchase facility with Goldman Sachs The Goldman Sachs Group, Inc., or simply Goldman Sachs (NYSE: GS) is one of the world's largest global investment banks. Goldman Sachs was founded in 1869, and is headquartered in the Lower Manhattan area of New York City at 85 Broad Street. Mortgage Company. With these modifications, the company will lower its overall cost of borrowing by approximately 40 basis points, increase its advance rates against selected collateral, and improve the flexibility and ease of use of the facilities. In a separate transaction, the company has obtained a commitment from KeyBank for a $100 million senior unsecured revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility. The facility has a term of three years, with a one-year extension, and will bear interest at LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). +1.90%, which is subject to adjustment if the Company's leverage ratio exceeds 80%. According to Bob Foley, chief financial officer of Gramercy, "The pricing improvements to our secured repurchase agreements and establishment of a sizable and cost effective unsecured revolving credit facility reflect the growing size, increasing diversification, and strong credit attributes of our loan portfolio. "We continue to aggressively pursue opportunities to reduce borrowing costs and increase financial flexibility as a means of enhancing leveraged returns to common equity." Gramercy is a commercial real estate specialty finance company that specializes in the direct origination and acquisition of first mortgage loans, subordinate mortgage participations, mezzanine loans, preferred equity and net lease investments involving commercial property throughout the United States. Gramercy Capital Corp. is headquartered in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , and has a regional investment office in Los Angeles. |
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