Capital Trust reaches debt restructuring deal

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
 JPMorgan’s Marianne Lake (Getty, iStock)

JPMorgan walks back some mortgage constraints

JPMorgan walks back some mortgage constraints
JPM asset CEO Mary Callahan Erdoes and 605 Third Avenue (Getty; Google Maps)

JPMorgan eyes $600M valuation for Third Ave office tower

JPMorgan eyes $600M valuation for Third Ave office tower
Cushman & Wakefield CEO Brett White and JPMorgan CEO Jamie Dimon (Cushman & Wakefield; Getty)

Cushman’s $3B debt load poses default risk

Cushman’s $3B debt load poses default risk
JPMorgan Chase CEO Jamie Dimon (Getty, iStock)

JPMorgan wants to invest $700M building rentals in Sun Belt states

JPMorgan wants to invest $700M building rentals in Sun Belt states
Companies are relying on surveys and other data points to determine who will come back to offices first. (iStock)

How do companies decide who should return to offices first? It’s tricky

How do companies decide who should return to offices first? It’s tricky
Deutsche Bank CEO Christian Sewing and Deutsche Bank's Manhattan headquarters at 60 Wall Street (Getty)

Deutsche Bank: Employees can stay home until mid-2021

Deutsche Bank: Employees can stay home until mid-2021
Jamie Dimon and 383 Madison Avenue (Getty, Google Maps)

JPMorgan suffers setback in return to office

JPMorgan suffers setback in return to office
Gap Senior Director of Real Estate Jennifer Rondholz, Morgan Stanley Prime Property Fund head Scott Brown and 170 Broadway (Linkedin, Google Maps)

Lower Manhattan retail condo squeezed by lender as Gap refuses to pay rent

Lower Manhattan retail condo squeezed by lender as Gap refuses to pay rent
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...