CV REIT COMPLETES REFINANCING PRIVATE PLACEMENT
CV REIT COMPLETES REFINANCING PRIVATE PLACEMENT WEST PALM BEACH, Fla., Dec. 31 /PRNewswire/ -- CV Reit Inc.
(NYSE: CVI), announced today it has completed the previously announced refinancing of its recreation notes receivable in a private placement by an investment banking firm. The refinancing resulted in the company borrowing approximately $44 million on a 15-year self-amortizing loan at an interest rate of 8.84 percent. "The proceeds from the loan were used to acquire an outstanding prior first mortgage on one of the properties that is security for one of the notes, and to retire a $39.2 million bank loan that would have matured in 1993," Alvin Wilensky, president, said.
He also noted that the company has become aware of the existence of two lawsuits filed by other institutional lenders against Cenvill Development Corporation and various of its subsidiaries alleging defaults by Cenvill Development under certain loan agreements. CV Reit is owed approximately $49 million on mortgage loans by Cenvill Development and several subsidiaries, all of which are current and in good standing at this time, he added. "Should a default occur in any of the loans due the company, there may be an adverse effect on the company's earnings and on its future declaration of dividends," Wilensky said. -0- 12/31/91 /CONTACT: Alvin Wilensky of CV Reit, 407-640-3155/ (CVI) CO: CV Reit Inc. ST: Florida IN: FIN SU: FNC SM-SB -- NY021 -- 5879 12/31/91 12:13 EST
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|Date:||Dec 31, 1991|
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