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 BOCA RATON, Fla., Oct. 5 /PRNewswire/ -- The Boca Raton Resort & Club has completed refinancing all of its mortgages as of Oct. 1, 1993. Over $150 million of mortgage refinancing was announced by the general partner of The Boca Raton Hotel and Club Limited Partnership, owner of the renowned destination resort for over 10 years. The partnership's general partner, The Boca Raton Management Company, was installed on Jan. 15, 1993 and is comprised of five directors: Theodore Fowler and Robert Hughes of The Private Merchant Banking Company; Dennis Callaghan of Callaghan & Partners; John Temple of Temple Management Company and Joel Stone of JAS Investment Corp. The Resort continues to be managed by Michael Glennie who has been president and CEO for approximately six years.
 Faced with a September maturity deadline to refinance its mortgage debt, the partnership's general partner commenced its efforts in January of this year. In closing the refinancing, the resort consummated two separate transactions. First, the partnership teamed up with Starwood Capital Group, L.P. to obtain the financing necessary to purchase the partnership's $132.5 million of first and second mortgage debt from the Resolution Trust Corporation (RTC). Then, using partnership cash, the partnership negotiated the purchase of its $20.5 million of third mortgage indebtedness, held by VMS Realty, at a very significant discount.
 The end result of this overall refinancing for the partnership is a $20 million reduction in debt, a 10-year extension of debt maturity and an approximate 20 percent reduction in annual interest expense. During the refinancing, the Boca Raton Resort & Club continued its tradition as a successful enterprise. 1992 was a record operating year and 1993 is ahead of expectations. Bestowed with the Mobil Five-Star and AAA Five- Diamond Awards, Boca is one of only seven resorts in the United States to hold both distinctions. A vacation destination and conference site, the property is considered "a crown jewel in the U.S. resort industry."
 At a time when financing real estate is inordinately difficult, the refinancing of the Boca Resort was made more challenging by the fact that the RTC was auctioning the bulk of the partnership's maturing debt to the highest bidder. In this circumstance, the general partner succeeded against competitors of the Resort and sharp professional "vulture" investors who sought to take advantage of the opportunity to own the debt with the intent of being hostile to the limited partnership. A spokesman for the general partner said, "The RTC auction process made life difficult, but it is a testimony to Starwood that they stood by us throughout -- we would not have pulled this off without their support."
 Working with the Boca partnership's general partner, Starwood arranged for an institutional investor to acquire a senior debt position in the amount of $75 million. The investor is a leader in providing capital to the hotel industry. Starwood, an entrepreneurial firm backed by private high net worth families which specializes in acquiring and restructuring real estate assets and debt securities, invested significant capital to the cement of the refinancing. A spokesman for Starwood said, "This was a complex transaction about which all involved should be quite pleased; we couldn't be more delighted with our role in helping Boca to enhance an asset that truly ranks as a national treasure."
 "Based on the effort of our new general partner over the past nine months and the closing of this refinancing, there has been a remarkable upturn in our investment," said Brent Donaldson, president of Liquidity Fund, the partnership's largest equity investor.
 The refinancing was closed despite continued disputes and negotiations with Banyan Short Term Income Trust, a former VMS affiliate, regarding its loans and related mortgages concerning an undeveloped parcel adjacent to the hotel and a second golf course located at Boca Country Club, 20 minutes from the hotel. In addition, disputes and negotiations also continue with Resort Management Associates, an affiliate of VMS Realty. "We continue to be confident that we will achieve a satisfactory resolution of these matters," said Michael Glennie.
 -0- 10/5/93
 /CONTACT: Bonnie Reuben of The Boca Raton Resort & Club, 407-395-3000, ext. 3038/

CO: The Boca Raton Resort & Club ST: Florida IN: LEI SU:

RK-JV -- FL008 -- 8940 10/05/93 14:28 EDT
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Publication:PR Newswire
Date:Oct 5, 1993

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