BETHESDA, Md., July 5 /PRNewswire/ -- Crestline Capital Corporation (NYSE: CLJ), announces the closing of a $92 million loan on eight of its thirty-one senior living communities. GMAC Commercial Mortgage Corporation provided the non-recourse first mortgage loan.
James L. Francis, Executive Vice President and Chief Financial Officer stated, With this refinancing, we continue to implement our strategy of recapitalizing our senior living communities and utilizing excess proceeds to
invest in the hotel management and ownership businesses and fund share repurchases. By levering our senior living communities on a pooled basis, we can access our capital in an efficient and flexible manner.
This refinancing represents an excellent opportunity for Crestline to pay down a significant amount of high, fixed-rate debt, while also generating nearly $50 million in excess proceeds, commented Larry K. Harvey, Senior Vice
President, Treasurer and Controller. The loan proceeds were utilized to pay down $43 million in existing debt secured by the properties and pay down a significant portion of the outstanding balance under the Company's Line of Credit. We will now have over $70 million of available capacity under our Line of Credit.
Crestline Capital is one of the nation's 20 largest hotel management companies through its wholly-owned subsidiary, Crestline Hotels & Resorts. Crestline Capital is also the nation's largest independent hotel leasing company, majority owner of an upscale extended-stay hotel portfolio, and owner of one of the nation's premier senior living community portfolios. Additional information about Crestline Capital is available at the company's Web site: http://www.crestlinecapital.com .
Note: Certain matters discussed herein are forward-looking statements within the meaning of the Private Litigation Reform Act of 1995. Certain, but not necessarily all, of such statements can be identified by the use of forward-looking terminology, such as believes, expects, may, will, should, estimates or anticipates or the negative thereof or comparable terminology. All forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual transactions,
results, performance or achievements of the Company to be materially different from any future transactions, results, performance or achievements expressed or implied by such forward-looking statements. These may include: (i)national and local economic and business conditions or governmental regulations that will affect demand, prices, wages or other costs for hotels and senior living communities; (ii) the level of rates and occupancy that can be achieved by such properties; (iii) the Company's ability to compete effectively in areas such as access, location, quality of properties and rate structures; (iv) the ability to maintain the properties in a first-class
manner (including meeting capital expenditure requirements); (v) the availability and terms of financing; (vi) governmental actions and initiatives
including the REIT Modernization Act; and (vii) changes to the public pay systems for medical care and the need for compliance with environmental licensure and safety requirements. Although the Company believes the
expectations reflected in such forward-looking statements are based upon reasonable assumptions and business opportunities, it can give no assurance that its expectations will be attained or that any deviations will not be material. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to
reflect any future events or circumstances.
SOURCE Crestline Capital Corporation
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