Smart & Final Secures $87.1-Mil Refinance, Larger Credit Line

CITY OF COMMERCE, CA-Prior to the end of the year, Smart & Final Inc. closed an $87.1 million, five-year synthetic lease financing secured by 18 distribution centers, warehouses and larger stores, as well as second mortgages on 72 stores in six states. Concurrently, the 130-year-old warehouse grocery chain closed a $175 million revolving line of credit, secured by inventory, accounts receivable, first mortgages on 72 stores and second mortgages on the synthetic lease properties.

Holland & Knight San Francisco partners Vernon C. Watters, William B. Piels, and Audrey L. Sung were the lead attorneys on the deal, which refinanced a three-year synthetic lease financing that was coming due and expanded the company’s line of credit. Partners L. Terry Jones and Ellen Scholhoffer of Schreck, Brignone & Godfrey acted as Smart & Final’s special counsel in Nevada.

“The combination of the two transactions with interleaved liens and security interests and the large number properties is unusual,” comments Watters, head of the Real Estate Department in Holland & Knight’s San Francisco office and in charge of complex real estate transactions.