This financing replaces a 1996 Real Estate Mortgage Investment Conduit borrowing of $181.7 million that matures in June 2003. The REMIC financing carries a 7.96% interest rate and is pre-payable in May 2003.
Louis P. Meshon Sr., Kramont's president and chief executive officer, projects the interest rate savings from this refinancing of debt is approximately $3.3 million a year, or $0.14 per share in additional funds from operations.
In addition, Meshon says, the new loan will be collateralized by 15 properties, compared to 27 shopping centers under the current REMIC, increasing the REIT's portfolio of unencumbered properties by 12, and, Meshon notes, "substantially adding to Kramont's financial flexibility."
The Met Life loan was arranged by Holliday, Fenoglio & Fowler.
Kramont owns, operates, manages and has under development 89 properties, encompassing approximately 11.6 million sf in 16 states.
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