An extended 20-year maturity date of October 2021 applies to $50 million of the debt, with those notes carrying an 8.3% rate.
CP Limited Partnership, the operating partnership of Chateau, completed a private placement of $150 million of 7.125% senior unsecured notes due in 2011. The net proceeds from the sale of the notes were used to repay a portion of the outstanding balance under a short-term acquisition credit facility incurred in connection with Chateau's acquisition of CWS Communities, Inc. in August.
"Completion of this financing is in keeping with our commitment to a conservative debt structure,'' says chief excutive officer Gary McDaniel. ''We are pleased to have extended some of our debt to mature in 20 years. Chateau is in an excellent position to accomplish our strategic goals going forward."
Because the notes were sold on a private-placement basis, the notes will not be registered under the Securities Act of 1933. And they may not be offered or sold in the US absent registration or an applicable exemption from the registration requirements.
Chateau Communities is a real estate investment trust with a portfolio of 222 communities with about 70,900 residential home sites, and 1,790 RV sites.
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