Regency Affiliates Closes Refinancing of Security Land Property in Maryland

    NEW YORK, June 25 /PRNewswire-FirstCall/ -- Regency Affiliates
 (OTC Bulletin Board:   RAFI) ("Regency" or the "Company") is pleased to announce
 that it has been informed by Security Land & Development Company Limited
 Partnership ("Security Land") that the refinancing of Security Land's property
 at 1500 Woodlawn Drive, Woodlawn, Maryland closed on June 24, 2003.  The
 property is a two story office building and connected six story tower totaling
 approximately 717,000 square feet occupied by the Social Security
 Administration of the United States Government.
     US SSA LLC (a single purpose entity owned by Security Land) borrowed
 $98,500,000 through a public debt issue underwritten by CTL Capital, LLC.
 Proceeds of the refinancing were used to repay the outstanding balance of
 Security Land's 1994 indebtedness, to establish reserves to make capital
 improvements to the property, to provide reserves required by the new debt, to
 pay costs and expenses related to issuing the debt, to pay fees related to the
 lease extension with the GSA and the financing, and to make a distribution to
 the partners of Security Land. The debt is for a term of 15.3 years maturing
 October 31, 2018 at which time the loan will have been paid down to a balance
 of $10,000,000.  Security Land was also successful in obtaining residual value
 insurance for approximately $10,000,000.  The interest cost of the financing
 is 4.63%.  The financing is non-recourse to Regency.
     Regency received approximately $41,000,000 from the Security Land
 distribution. In addition, under the terms of the Security Land partnership
 agreement, Regency is entitled to (i) 95% of Security Land's distributions of
 cash flow until Regency has received $2,000,000 of such distributions, and
 thereafter 50% of such distributions, (ii) a $180,000 annual management fee
 commencing after  Regency has received $2,000,000 of cash flow distributions
 and (iii) a 50% interest in all other distributions from Security Land.  The
 foregoing percentages are inclusive of Regency's interest as a limited partner
 in 1500 Woodlawn Limited Partnership, the general partner of Security Land
 ("1500 Woodlawn").
     In connection with the Security Land refinancing and distribution, Regency
 was required to repay its KBC Bank loan.  The payoff amount was approximately
 $14,125,000, which included a release fee and make-whole premium.
     Laurence S. Levy, Regency's Chairman, President and CEO said, "We are
 extremely pleased to announce the refinancing of the Security Land property.
 We have worked very hard with Security Land's General Partner to maximize the
 value of this investment to  Regency's shareholders.  Regency's balance sheet
 is very strong as a result of the Security Land refinancing and distribution.
 Regency management looks forward to continuing its efforts to maximize
 shareholder value."
 
     CAUTIONARY STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
 1995.  Statements in this press release may constitute "forward-looking
 statements" within the meaning of Section 27A of the Securities Act of 1933,
 as amended, and Section 21E of the Securities Exchange Act of 1934, as
 amended.  Any statements contained herein which are not statements of
 historical facts and that address activities, events or developments that
 Regency or its management expects, believes or anticipates will or may occur
 in the future shall be deemed to be forward-looking statements.  Forward-
 looking statements are inherently subject to risks and uncertainties, many of
 which cannot be predicted with accuracy and some of which might not be
 anticipated.  Future events, actual results of performance, financial or
 otherwise, could differ materially from those set forth in or contemplated by
 the forward-looking statements herein.  Readers are cautioned not to place
 undue reliance on these forward-looking statements, which speak only as of the
 date hereof.  Regency undertakes no obligation to release publicly any
 revisions to these forward-looking statements that may be made to reflect
 circumstances after the date hereof or to reflect the occurrence of
 unanticipated events.  The inclusion of any statement in this press release
 does not constitute an admission by Regency or any other person that the
 events or circumstances described in such statement are material.
 
 

SOURCE Regency Affiliates

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