Highlights
-- Raises $32.7 million of new mortgage money
-- Reduces Line of Credit by approximately $19.2 million
KENNETT SQUARE, Pa., Sept. 9 /PRNewswire/ -- ElderTrust (NYSE: ETT), an
equity healthcare REIT, today reported that it has successfully completed a
new mortgage financing of approximately $32.7 million, secured by five
existing properties. The new mortgage debt, arranged by J.P. Morgan, has a
ten-year term and a fixed interest rate. Approximately $19.2 million of the
total debt has been used to reduce the Company's outstanding line of credit to
a current balance of approximately $75.8 million. The remaining mortgage
money was used to pay-down approximately $10.5 million in pre-existing
mortgage indebtedness on the Belvedere NRC and Chapel NRC properties and other
transaction-related expenses.
D. Lee McCreary, Jr., Acting President & Chief Executive Officer and Chief
Financial Officer, said, "This refinancing completes the first stage of a
multi-step plan to resolve the line of credit issue. Going forward we are
also working with J.P. Morgan to refinance two medical office buildings. If
successful, this refinancing will provide additional net mortgage proceeds of
approximately $9.0 million that will be used to further reduce the line of
credit. We hope to complete the next phase of our plan within the next few
weeks."
Mr. McCreary added, "As we have previously stated, refinancing our bank
credit facility, which comes due January 1, 2000, continues to be management's
top priority."
Additional details on the refinancing are as follows:
Total amount borrowed $32,695,000
Add: Deposits applied 162,000
Sub-Total 32,857,000
subtract:
Mortgage pay-off (10,550,000)
Pre-payment penalty (1,075,000)
Required loan escrows (1,085,000)
Estimated closing costs (662,000)
Interest (285,000)
Total Expenses 13,657,000
Approximate proceeds applied to
Line of Credit $19,200,000
Line of Credit Extension Fee expensed
on refinancing $180,000
Term 10 years
Amortization period 25 years
Weighted average interest rate 8.37%
ElderTrust is a real estate investment trust that invests in real estate
properties used in the healthcare services industry, principally along the
East Coast of the United States. Since commencing operations in January 1998,
the Company has acquired direct and indirect interests in 31 buildings and has
loaned $52 million in construction and term financing on nine additional
healthcare facilities.
Certain matters discussed within this press release may be deemed to be
forward-looking statements within the meaning of the Private Securities Act of
1995. Although ElderTrust believes the expectations reflected in such
forward-looking statements are reasonable assumptions, it can give no
assurance that its expectations will be attained. Factors that could cause
actual results to differ materially from ElderTrust's expectations include
real estate conditions, the Company's ability to refinance its existing bank
credit facility, changes in the economic conditions and other risks detailed
from time to time in the Company's SEC reports and filings. The Company
assumes no obligation to update or supplement forward-looking statements that
become untrue because of subsequent events.
For more information on ElderTrust via fax at no charge, please dial
1-800-PRO-INFO and enter ticker symbol ETT, or visit ElderTrust's Web site at
http://www.eldertrust.com .
SOURCE ElderTrust
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Related links:
http://www.eldertrust.com
CONTACT:
D. Lee McCreary, Jr., Acting President &
Chief Executive Officer, Chief Financial Officer of ElderTrust,
610-925-4200
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