Post Properties Announces Prepayment of Secured Notes
22 Dicembre 2011 - 11:01PM
Business Wire
Post Properties, Inc. (NYSE: PPS) (the “Company”), an
Atlanta-based real estate investment trust, today announced that
certain wholly-owned subsidiaries (the “Borrowers”) of its
operating partnership, Post Apartment Homes, L.P., prepaid the
aggregate outstanding principal amount of approximately $184.7
million on six multi-family fixed rate notes with the Federal Home
Loan Mortgage Corporation. The notes were secured by mortgages on
six properties located in Atlanta, GA, Charlotte, NC, and Dallas,
TX. The notes required fixed interest-only payments at 6.09% and
would have matured on November 1, 2014. The Borrowers also paid an
aggregate $6.2 million prepayment premium in connection with the
prepayment of the notes.
The Operating Partnership used $135 million of borrowings under
its existing $300 million unsecured revolving line of credit and
available cash to finance the prepayment of the notes and the
payment of the related prepayment premium. Such line of credit
borrowings will bear interest at a rate of LIBOR plus 2.30%. The
Operating Partnership intends to refinance the amounts drawn under
its revolving credit facility with an unsecured long-term bank
financing during the first quarter of 2012.
The Company expects to record a loss on debt extinguishment of
approximately $7.0 million, or approximately $0.13 per diluted
share, in the fourth quarter of 2011 in connection with the
prepayment premiums incurred and the write off of related
unamortized deferred financing costs. This charge was not included
in the Company’s previously reported Funds from Operations earnings
guidance.
Said Chris Papa, Executive Vice President and Chief Financial
Officer of the Company, “The prepayment of these notes and our
anticipated unsecured long-term bank financing in the first quarter
of 2012 is consistent with our strategy of reducing secured debt
levels and borrowing costs over time and refinancing our near term
debt maturities. In that regard, we were pleased that Moody’s
Investor Service last week affirmed the Company’s senior unsecured
credit rating of Baa3, and revised the Company’s outlook to
positive from stable, reflecting the improvements that the Company
has made to its credit profile.”
Forward-Looking Statements
Certain statements made in this press release may constitute
“forward-looking statements” within the meaning of the federal
securities laws. Statements regarding future events and
developments and the Company’s future performance, as well as
management’s expectations, beliefs, plans, estimates or projections
relating to the future, are forward-looking statements within the
meaning of these laws. Examples of such statements in this press
release include, expectations regarding the future refinancing of
amounts drawn under the revolving credit facility with unsecured
long-term bank financing and expectations regarding a loss on debt
extinguishment in the fourth quarter of 2011. All forward-looking
statements are subject to certain risks and uncertainties that
could cause actual events to differ materially from those
projected. Management believes that these forward-looking
statements are reasonable; however, you should not place undue
reliance on such statements. These statements are based on current
expectations and speak only as of the date of such statements.
There are a number of important factors that could cause the
Company’s actual results and its expectations to differ materially
from those described in the Company’s forward-looking statements,
including those included under the caption “Risk Factors” in the
Company’s Annual Report on Form 10-K for the year ended December
31, 2010, and as may be discussed in subsequent filings with the
Securities and Exchange Commission. The risk factors discussed in
the Form 10-K under the caption “Risk Factors” are specifically
incorporated by reference into this press release. The Company
undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of future events,
new information or otherwise.
About Post Properties
Post Properties, founded 40 years ago, is a leading developer
and operator of upscale multifamily communities. The Company’s
mission is delivering superior satisfaction and value to its
residents, associates, and investors, with a vision of being the
first choice in quality multifamily living. Operating as a real
estate investment trust (“REIT”), the Company focuses on developing
and managing Post® branded resort-style garden and high density
urban apartments. Post Properties is headquartered in Atlanta,
Georgia, and has operations in ten markets across the country.
Post Properties has interests in 21,658 apartment units in 58
communities, including 1,747 apartment units in five communities
held in unconsolidated entities and 1,568 apartment units in five
communities currently under development. The Company is also
selling luxury for-sale condominium homes in two communities
through a taxable REIT subsidiary.
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