Colonial Properties Trust (CLP) Closes $156M Fannie Mae Credit Facility, Raises FY09 Outlook
Colonial Properties Trust (NYSE: CLP) today announced the closing of a $156.4 million secured credit facility and an update to the company’s 2009 guidance. The credit facility was originated by Grandbridge Real Estate Capital LLC for repurchase by Fannie Mae (NYSE: FNM).
Comprised of a $145.3 million tranche collateralized by seven multifamily properties and an $11.1 million tranche collateralized by one multifamily property, the credit facility has a 10-year term and carries a weighted average fixed interest rate of 5.31%. The net proceeds from the credit facility will be used to repay a portion of the outstanding balance under the company’s $675 million unsecured line of credit, which has an outstanding balance of approximately $183 million after applying the proceeds from the credit facility.
Raises its FY09 FFO guidance from $0.65-$0.70 to $0.75-$0.85. The Street is currently expecting FY09 FFO guidance of $0.
The increased guidance reflects: an increase in projected gains from the unsecured bond repurchase program, revisions to the same-property revenue, expense and net operating income growth expectations for the remainder of 2009, and further reductions in corporate G&A expenses for 2009.
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