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Chateau Restructures $70-Mil Debt

GREENWOOD VILLAGE, CO-The nation's largest owner/operator of manufactured home communities trades interest rate for loan term, extending the bulk of its debt to 2021 at an 8.3% interest rate, 86 basis points higher.

By John Rebchook | Updated on November 01, 2001

GREENWOOD VILLAGE, CO-Chateau Communities, the nation’s largest owner/operator of manufactured home communities, restructured the bulk of its $70-million, 7.54% senior unsecured notes scheduled to mature in November 2003. The tradeoff for a longer term was a higher interest rate by 76 basis points.

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.

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