Cali Realty Corporation Retires $64.5 Million REMIC Mortgage Financing
08/13/1997 Category: Financial
Company Also Receives $20 Million Increase In Revolving Credit Facility
CRANFORD, NJ--August 13, 1997--Cali Realty Corporation (NYSE: CLI) today announced that it has retired the Company's $64.5 million real estate mortgage investment conduit (REMIC) secured financing. The prepaid balance, along with yield maintenance and other costs, were made available primarily from funds drawn on the Company's new $400 million unsecured credit facility.
Additionally, Cali announced today that Prudential Realty Funding Corporation has increased the Company's existing revolving credit facility to $100 million from $80 million and extended the maturity date to August 31, 1998. The interest rate on the facility remains unchanged at LIBOR plus 125 basis points.
Combined with the recently-announced $400 million unsecured credit facility, led by Fleet National Bank, Cali's total borrowing capacity under its revolving credit lines currently aggregates $500 million. The Company currently has $230 million of borrowings outstanding under its facilities.
Barry Lefkowitz, chief financial officer, stated, "We are pleased that our greater borrowing capacity has allowed us the flexibility to retire the REMIC financing early and further streamline our debt structure. The early retirement of the REMIC financing, coupled with our $500 million in total credit facilities, positions Cali to take advantage of potential market opportunities and provides us with greater working capital going forward. In addition, the increase in our credit facility from Prudential and our new unsecured facility confirms the confidence our lenders have in Cali's future growth and development."
With the retirement of the secured REMIC financing, Cali now has 83 unencumbered properties totaling seven million square feet, representing approximately 58 percent of the Company's portfolio.
Cali Realty Corporation is a fully-integrated, self-administered, self-managed real estate investment trust (REIT) providing leasing, management, acquisition, development, construction and tenant-related services for its portfolio. Cali owns 130 properties, primarily office and office/flex buildings, totaling approximately 12 million square feet. All of the properties are located in New Jersey, New York, Pennsylvania, and Connecticut. Further information on Cali Realty Corporation is available on the Company's website at http://www.calirealty.com.
Certain information discussed in this press release may constitute forward-looking statements within the meaning of the Federal Securities law. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office, office/flex and industrial/warehouse properties in the northeast; interest rate levels; the availability of financing; and other risks associated with the development and acquisition of properties, including risks that the development may not be completed on schedule, that the tenants will not take occupancy or pay rent, or that development or operating costs may be greater than anticipated. For further information on factors which could impact the Company and the statements contained herein, reference should be made to the Company's filings with the Securities and Exchange Commission including quarterly reports on Form 10-Q, reports on Form 8-K, and annual reports on Form 10-K.