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Sources of FinancingZany Brainy, Inc. (610-278-7800) has retained the investment banking firm of William Blair & Company to explore its alternatives for credit reserves. Zany Brainy had its credit facility at First Union National Bank cut to $50.7 million, approximately the amount it has already borrowed. The interest on the company’s outstanding debt has been raised to default levels. A key distributor for the stores, Learning Curve International, Inc. has suspended shipments to the company’s distribution centers until another line of credit can be secured. Nasdaq has told the toy retailer that its stock had not been maintaining a minimum price and was in danger of being delisted from the exchange. The 188-unit chain operates in 34 states and has met with creditors to restructure its unsecured debt.
Lexington Corporate Properties Trust (212-692-7260) closed on a $35 million unsecured revolving credit facility to replace the $60 million facility maturing in July. The loan has a three-year term and bears interest of 150 to 250 points over LIBOR, depending on the number of properties Lexington owns free and clear of mortgage debt. As of late March, the company had $22.8 million outstanding at a interest rate of 6.46%.
Furrs Supermarkets (505-998-3877) received final court approval for $33 million in debtor-in-possession financing. The loan will be used to meet post-petition obligations and was arranged through Heller Financial, Inc., Fleet Capital Corporation, Bank of America, N.A. and Metropolitan Life Insurance Company. The 71-unit supermarket chain operates in NM and TX.
L.J. Melody & Company (214-692-9111) secured $19 million in financing for the 167,000 sq.ft. Preston Forest Village Shopping Center in Dallas, TX. GMAC provided the funding on behalf of Dana Commercial Credit. The company has also arranged $42 million of financing for the 388,000 sq.ft. Village on the Parkway Shopping Center in Addison, TX. The property is owned by Dunhill Partners and Salomon Brothers will provide the funding.
IRT Property Company (770-955-4406) sold $50 million in unsecured notes at an interest rate of 7.77%. The notes are due in 2006. The proceeds were used to repay a $50 million note offering that was due April 1. The action allowed the company to eliminate loan maturities until 2003.
First Union Securities (713-278-4311) offers financing for retail projects in the range of 209 points bps to 274 points bps. The company has just closed on a $14.7 million financing package for Sampson Crossing Shopping Center in Sampson, NC. The deal was offered at a rate of 7.18% over a 10-year term with a 30-year amortization period. The deal has a DSCR of 1.25. The company also closed an $8.7 million deal for Northchase Plaza Shopping Center in Houston, TX. The deal was signed at a rate of 7.08% over a 10-year term with a 25-year amortization period. The deal has a DSCR of 1.27.
Capital Lease Funding (212-217-6300) has arranged over 400 loans totaling $2 billion with 60 credit tenants since 1997. The company is dedicated to providing financing for properties net leased to credit tenants rated BBB- or better. The company has worked with such retailers as: Home Depot, Shaw’s Supermarkets, Kohl’s Department Store, Exxon, Dollar General, Ahold Koninklijke, Wal*Mart, American Stores Company, CVS, BJ’s Wholesale Club, Walgreens, Food Lion, Lowe’s Home Centers, McDonalds, Bed, Bath & Beyond and 7-Eleven. |