Capital Trust reaches debt restructuring deal

TRD New York /
Apr.April 01, 2011 09:00 AM

Real estate finance company Capital Trust has reached a deal to restructure its outstanding debt, thanks in part to an $83 million mezzanine loan by an affiliate of Five Mile Capital Partners that will finance a new subsidiary holding the bulk of Capital’s interest-earning assets. According to an announcement yesterday, Capital will extinguish its $98.1 million senior credit facility and $143.8 million in junior subordinated notes while spinning off its $339.6 million in legacy repurchase obligations with JPMorgan, Morgan Stanley and Citigroup into the new CT Legacy REIT. Capital was among the lenders that helped finance Morgan Stanley’s $6.7 billion purchase of the CNL Hotels assets in 2007, and that seized the portfolio earlier this year. Five Mile will have a 24.2 percent stake in the newly-created subsidiary. The three banks each received cash pay downs of 10 percent of their outstanding balances, for a total of $33.9 million, while maturity dates for the loans were extended to March 2013 and March 2014. The restructuring deal leaves Capital free of recourse debt going forward. “Capital Trust maintains the full capabilities of its platform and is well positioned to continue its capital raising, investing and asset management activities,” Steven Plavin, Capital’s CEO, said of the deal. TRD


Related Articles

arrow_forward_ios
The Daily Digest - Tuesday

WeWork bonds hit low, new LLC legislation went farther than intended: Daily digest

Clockwise from top left: The Watchtower building at 25 Columbia Heights, Long Island University at 1 University Plaza, The Rheingold at 10 Montieth Street and 871 Bushwick Avenue in Brooklyn (Credit: Wikipedia and Google Maps)

These were the top 10 outer borough loans last month

Anna Castelini and 601 Lexington Avenue (Credit: LinkedIn and Andrew Moore via Flickr)

DeKalb Market Hall creator bringing new food hall to Midtown

Wells Fargo, JPMorgan Chase and Citigroup each recorded a rise in second quarter profits in their consumer divisions (Credit: iStock)

Banks see uptick in mortgages, but remain wary ahead of potential Fed interest rate cut

Clockwise from top left: 54 Crown Street, 451 10th Avenue, 46-09 69th Street and 270 Park Avenue (Credit: Google Maps)

The top 10 biggest real estate projects coming to NYC

Mack Real Estate Group's Richard Mack and JPMorgan's Jamie Dimon with a rendering of 123 Melrose Street (Credit: Getty Images and ODA Architecture)

Yoel Goldman sews up long-term funds for Rheingold Brewery Project

Manhattan hotel at center of 1MDB fraud case lands $615M refinancing

Manhattan hotel at center of 1MDB fraud case lands $615M refinancing

45 Main Street in Brooklyn and Two Trees principal Jed Walentas

Two Trees lands $85M refi for Dumbo’s
45 Main Street

arrow_forward_ios