(Crystal Proenza is associate editor of Real Estate Florida.)
JACKSONVILLE, FL-Locally based developer St. Joe Co. has entered into a $100-million credit facility with Branch Banking and Trust Co. The facility, which matures in three years, has an option to increase to $200 million through syndication. St. Joe paid $905,000 in fees to BB&T in connection with the closing of the new credit line, according to Securities and Exchange Commission documents.
William S. McCalmont, St. Joe's chief financial officer, stated in a release that getting the facility is particularly remarkable given currently tight capital markets. "With our already solid balance sheet, virtually no debt and no current plans to draw on this new facility," he said, "we have increased our financial flexibility providing us further stability in these difficult market conditions."
Executives at St. Joe, which has developed nearly four million sf of retail, office and commerce space throughout the state since 1998, were not readily available for comment Wednesday. The release stated that the new credit line replaces an existing one with Wachovia Bank and other lenders, including BB&T.
The new facility provides for swing advances of up to $5 million and the issuance of letters of credit of up to $30 million, according to St. Joe's SEC filing. The documents state that "the proceeds of any future borrowings under the credit agreement may be used for general corporate purposes" and that the company "has pledged 100% of the membership interests in its largest subsidiary, St. Joe Timberland Co. of Delaware LLC, as security for the credit facility."
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