LNR Property Corp. Achieves Comprehensive Recapitalization
MIAMI BEACH, Fla., July 29 /PRNewswire/ -- LNR Property Corp. ("LNR" or the "Company") today announced that it has completed a comprehensive balance sheet recapitalization (the "Recapitalization"). As part of the Recapitalization, the Company raised approximately $417 million in cash through a new equity issuance (the "Equity Raise"), the proceeds of which (together with cash on hand) were used to repay $426 million of the Company's existing $851 million term loan (the "Existing Term Loan"). In addition, Riley Holdco Corp. ("HoldCo"), LNR's parent company, extinguished all of the outstanding $450 million of Senior Notes due 2015 issued by HoldCo in exchange for stock of LNR.
The investors in the Equity Raise (the "Investors") included an affiliate of Vornado Realty Trust, an affiliate of iStar Financial, certain affiliated funds and/or managed accounts of Cerberus Capital Management, L.P., and certain funds managed by Oaktree Capital Management, L.P. or their subsidiaries.
As a result of the above transactions, (i) the Investors acquired, in the aggregate, all of the outstanding ownership interests of the Company and (ii) LNR and HoldCo have reduced their total debt outstanding from $1.3 billion to approximately $425 million, representing a reduction of over $875 million.
"We are pleased to be recapitalizing LNR in a way that preserves our strong franchise and wish to thank all parties involved for their hard work and flexibility in completing this recapitalization," said LNR Property Corp. CEO Tom Hughes. "This recapitalization, and the substantial new investment in LNR by our existing sponsor and four largest creditors, recognizes the Company's value and its leadership in the commercial real estate industry as both an investor and the premier special servicer. Moving forward with world-class equity investors, a strong balance sheet and healthy cash flow, LNR will be well-positioned to capitalize on opportunities in the commercial real estate market."
Hughes concluded, "This demonstration of confidence in our business is due in no small part to our valued employees and stakeholders, whom I wish to thank again for their continued support. As always, our focus will be on continuing to provide industry-leading services to our partners and clients around the world."
LNR's financial advisors on the Recapitalization were Lazard and Goldman, Sachs & Co. Schulte, Roth and Zabel LLP acted as outside transactional counsel to LNR and Cerberus, and Dewey & LeBoeuf LLP acted as restructuring and governance counsel to LNR. Sullivan & Cromwell LLP, Roberts & Holland LLP and Cadwalader, Wickersham & Taft LLP acted as outside counsel to Vornado Realty Trust, Katten Muchin Rosenman LLP acted as outside counsel to iStar Financial and Debevoise & Plimpton LLP acted as outside counsel to Oaktree Capital Management, L.P.
Forward-Looking Statements:
THESE MATERIALS CONTAIN FORWARD LOOKING STATEMENTS WHICH ARE BASED UPON ASSUMPTIONS. DUE TO VARIOUS RISKS AND UNCERTAINTIES THERE CAN BE NO ASSURANCE THAT ACTUAL RESULTS WILL NOT BE MATERIALLY DIFFERENT FROM THOSE CONTEMPLATED IN THE FORWARD LOOKING STATEMENTS CONTAINED HEREIN. THE INFORMATION CONTAINED HEREIN IS SUBJECT TO CHANGE WITHOUT NOTICE.
Contact: LNR Media Line (305) 695-5426
SOURCE LNR Property Corp.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article