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Kramont Obtains $129M in Credit, Cash

PHILADELPHIA-In separate year-end transactions, the Plymouth Meeting, PA-based REIT closes on a $100-million credit facility and sells 2.09 million shares for proceeds in excess of $29.4 million. The three-year credit facility allows refinancing of a $56.8-million mortgage due in August.

By Marita Thomas | Updated on January 02, 2003

PHILADELPHIA-Plymouth Meeting, PA-based Kramont Realty Trust has closed a $100-million, three-year, senior secured, revolving credit facility and also has sold 2.09 million of its common shares at $14.35 a share for an aggregate purchase price just short of $30 million. The credit facility is with a group of five banks.

Boston-based Fleet Securities is the lead arranger and Fleet National Bank is administrative agent. Both are subsidiaries of FleetBoston Financial Services. Kramont made an initial borrowing of $67.988 million from the credit facility to refinance $56.8 million in a current mortgage from Horsham, PA-based GMAC Commercial Mortgage Corp.

The loan would have matured this August. The refinancing lowers the blended interest rate from LIBOR plus 270 basis points with GMAC to a LIBOR plus a maximum of 225 basis points with Fleet.

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