Jones Lang Wootton arranges financing on Sak's real estate portfolio.
Jones Lang Wootton arranges financing on Saks' real estate portfolio
Jones Lang Wootton (JLW), an international real estate advisory firm based in New York City, has structured and arranged $500 million securitized mortgage financing for a pool of 45 properties owned or leased by Saks & Company, the preeminent U.S. specialty store retailer, including its flagship Fifth Avenue store. Most of the properties in the pool are Saks retail outlets.
After careful analysis of alternative financing sources, JLW recommended a credit-enhanced, securitized structure. Financial Security Assurance (FSA), a financial guaranty company which is a subsidiary of US West Capital Corporation, provided the credit enhancement in the form of a surety bond which unconditionally and irrevocably guarantees scheduled payments of principal and interest on the resulting securities, producing an Aaa/AAA rating on the securities from Moody's Investors Service and Standard & Poor's Corporation, respectively.
The transaction was executed as 5-year Euromarket variable rate, floating rate, and extendible adjustable rate notes. Variable rate notes (VRNs) and floating rate notes (FRNs) were issued in an aggregate principal amount of $300 million. The VRNs, which will be remarketed quarterly, will bear an interest rate reset up to a maximum of 75 basis points over LIBOR; the initial rate will be LIBOR plus 45 basis points. Goldman, Sachs International served as placement agent and will be remarketing agent for the VRNs.
Proceeds of the financing will be used to repay bridge loans incurred by Investcorp when it acquired Saks last July from Batus Plc.
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|Title Annotation:||Saks Inc.|
|Date:||Jul 1, 1991|
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