Attached files
| file | filename |
|---|---|
| 8-K - Gramercy Property Trust Inc. | v168533_8k.htm |
| EX-10.1 - Gramercy Property Trust Inc. | v168533_ex10-1.htm |
Gramercy
Capital Corp. Settles Wachovia Bank, National Association Secured Credit
Facility and Term Loan
New York,
NY – December 7, 2009 - Gramercy Capital Corp. (NYSE: GKK) announced today that
it has entered into a termination agreement with Wachovia Bank, National
Association, or Wachovia, as administrative agent, to settle and satisfy in full
a pre-existing loan obligation of approximately $44.5 million under its secured
term loan, credit facility and related guarantees. The Company made a one-time
cash payment of $22.5 million and executed and delivered to Wachovia a
subordinate participation interest in the Company’s 50% interest in one of the
four mezzanine loans formerly pledged under the credit agreement. The maximum
cash proceeds Wachovia may receive pursuant to the subordinate participation
interest is $21.0 million. Upon termination, all of the security interests and
liens in favor of Wachovia under the credit agreement were released.
Simultaneous with their release, two mezzanine loans were contributed by the
Company to two of its CDOs.
Clifford
Chance US LLP acted as the Company’s restructuring counsel for this
transaction.
Company
Profile
Gramercy
Capital Corp. is a self-managed integrated commercial real estate finance and
property investment company whose Gramercy Finance division focuses on the
direct origination and acquisition of whole loans, subordinate interests in
whole loans, mezzanine loans, preferred equity, commercial mortgage-backed
security and other real estate securities, and whose Gramercy Realty division
targets commercial properties leased primarily to financial institutions and
affiliated users throughout the United States. Gramercy is headquartered in New
York City, and has regional investment and portfolio management offices
Jenkintown, Pennsylvania, Charlotte, North Carolina and St. Louis,
Missouri.
To review
Gramercy's latest news releases and other corporate documents, please visit the
Company's website at www.gkk.com or
contact Investor Relations at 212-297-1000.
Forward-looking
Information
This
press release contains forward-looking information based upon the Company's
current best judgment and expectations. Actual results could vary from those
presented herein. The risks and uncertainties associated with forward-looking
information in this release include the success or failure of our efforts to
implement our current business strategy; the strength of the commercial finance
and real estate property market; and the banking industry specifically;
competitive market conditions; unanticipated administrative costs; general and
local economic conditions; interest rates; capital and credit market conditions;
bankruptcies and defaults of borrowers or tenants in the Company's properties or
properties securing the Company's debt investments; the Company's ability to
operate as an internally-managed company; difficulties encountered in
integrating the Company's former external manager into the Company; the
resolution of the Company's non-performing and sub-performing assets; compliance
with financial covenants, maintenance of liquidity needs; management changes;
compliance with over-collateralization and interest coverage tests in the
Company's CDOs; and other factors including those listed in the Company's Annual
Report on Form 10-K and in the Company's Quarterly Reports on Form 10-Q, which
are beyond the Company's control. The Company undertakes no obligation to
publicly update or revise any of the forward-looking information. For further
information, please refer to the Company's filings with the Securities and
Exchange Commission.
Contact:
Jon W.
Clark
Chief
Financial Officer
(212)
297-1000
-Or-
Julia M.
Rivera
Investor
Relations
(212)
297-1000