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The Olson Co. Secures $75M Commitment

LA JOLLA, CA-The seven-year institutional placement will serve as a mezzanine-debt facility for The Olson Co., thus providing a new capital structure for the developer. In turn, the company will no longer need to

By Erin Cassin | Updated on February 26, 2003

LA JOLLA, CA-Residential developer The Olson Co. has recently secured a seven-year, $750-million commitment from a pension fund in the Midwest.

The institutional placement, which was closed by La Jolla-based Silver Portal LLC on behalf of Olson, will serve as a mezzanine-debt facility for the developer. Moving forward, the developer will now use a new capital structure, which will consist of traditional bank lines, Olson’s own equity and the mezzanine-debt facility. This new structure will “eliminate the company’s need to get a traditional mezzanine-debt piece on a deal-by-deal basis,” Eric Wurtzebach, a director with Silver Portal, tells GlobeSt.com.

The placement, which can be drawn down for the next seven years, will help fund Olson’s $1-billion development pipeline, which is expected to stretch out over the next three years. “As the facility is drawn down, capital can be put back in and get reused,” Wurtzebach says.

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