Resort Finance America and CapitalSource Increase Financing Commitment to Grand Pacific Resorts' MarBrisa Project

DALLAS, April 29, 2011 /PRNewswire/ -- Resort Finance America, LLC ("RFA"), which is managed by Lantern Asset Management, LLC, and Grand Pacific Resorts of Carlsbad, California ("GP"), one of the oldest and largest vacation ownership companies in California, today announced that they have expanded their existing relationship.

This increased financial commitment reflects RFA's confidence in GP's leadership and business strategy, as well as MarBrisa's relationship with Hilton Grand Vacations ("HGV"), which has assumed responsibility for the management, marketing and operation of MarBrisa.  

Under the terms of the new agreement, RFA will increase its existing construction financing commitment at GP's MarBrisa Resort.  The additional construction financing will be utilized to complete the current phase of development and to construct 60 additional units at the resort.  CapitalSource has also agreed to provide a new revolving timeshare receivables facility to GP to finance consumer purchases of inventory at MarBrisa.  The transaction closed earlier this month.

"This transaction reflects our confidence in Grand Pacific's strong and disciplined management team and its business strategy, as well as the company's record of success in the Southern California marketplace," RFA President William T. Phillips said.  "In addition, with Hilton Grand Vacations, Grand Pacific has attracted a top-tier industry operator, making this an even more compelling investment opportunity."

David Brown and Tim Stripe, co-presidents of Grand Pacific Resorts, added, "We are gratified that both RFA and CapitalSource have provided this important vote of confidence in our business strategy.  This new commitment will allow us to construct the second phase at MarBrisa.  Our alignment with HGV will enhance the guest experience and accelerate the sales of the project."

Built in 2008 and situated on 41 prime acres overlooking the Pacific Ocean, Hilton Grand Vacations Club at MarBrisa is entitled for the development of 350 timeshare units and is located near the quaint coastal village of Carlsbad.  MarBrisa offers year-round appeal as an idyllic vacation destination.  The classic Spanish Mediterranean-style resort features luxurious studio, one-, two- and three-bedroom vacation villas, each with a private patio or balcony offering panoramic ocean or park views.  Hilton Grand Vacations Club at MarBrisa offers guests direct access to nearby LEGOLAND® California and SEA LIFE™ Aquarium.  Golfers delight in dozens of excellent nearby courses, including The Crossings at Carlsbad Championship Golf Course adjacent to the resort.  The property is just a short drive from Southern California's renowned attractions including SeaWorld, the Wild Animal Park and the San Diego Zoo.

About Grand Pacific Resorts

Grand Pacific Resorts is one of the oldest and largest vacation ownership companies based in California.  Servicing over 45,000 owner-families every year, Grand Pacific Resorts has developed and manages 14 properties.  For more information, visit www.grandpacificresorts.com.

About Lantern Asset Management, LLC and Resort Finance America, LLC

Lantern Asset Management, LLC ("Lantern") is a real estate asset management company headquartered in Dallas, Texas with offices in Orlando and New York that is wholly owned by affiliates of Centerbridge Partners, L.P. ("Centerbridge") and management.  Lantern was formed in September 2010 to assist Centerbridge and Resort Finance America LLC ("RFA") with the origination, underwriting, acquisition and servicing of commercial real estate assets.  RFA was formed by Centerbridge in connection with the acquisition of $1.0 billion portfolio of loans related to timeshare resorts throughout North America from Ally Commercial Finance LLC in September 2010.  In addition to asset management and continued investments in the Ally portfolio, RFA seeks to make new debt and equity investments across the timeshare industry.  RFA is managed and operated by principals of Lantern.

About CapitalSource

CapitalSource Inc. is a commercial lender that provides financial products to middle market businesses and offers depository products and services in southern and central California through its wholly owned subsidiary CapitalSource Bank.  As of December 31, 2010, CapitalSource had total assets of $9.4 billion and $4.6 billion in deposits.  Visit www.capitalsource.com for more information.

CONTACTS

For Resort Finance America and Lantern Asset Management
Jaquelyn M. Scharnick, Brunswick Group
+ 1 214-459-8181
[email protected]

For Grand Pacific Resorts
David Brown and Tim Stripe
+1 760-431-8500
[email protected]
[email protected]

For CapitalSource
Thomas Meyerer
+1 212-321-7207
[email protected]

SOURCE Resort Finance America, LLC