This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

CapLease Extends Mortgage Debt On Nestle Properties

CapLease, Inc. (NYSE: LSE) announced today that it has finalized the extension of the mortgage debt on the three Nestlé warehouses located in Breinigsville, PA, Lathrop, CA and Fort Wayne, IN. The properties are financed with a $106 million securitized first mortgage note that was scheduled to mature this month. The Company obtained an up to five year extension, inclusive of all extension options and with the last two years subject to re-tenanting the Fort Wayne property by August 2015. The note face amount of $106 million and coupon of 6.32% were not modified by the extension, and the only immediate capital required for the extension was $3 million which was funded into a reserve with the lender for future re-tenanting costs at the Fort Wayne property.

Paul McDowell, Chairman and Chief Executive Officer, stated, “We are very pleased with the terms of and speed with which we were able to complete the loan extension, and that execution reflects the high quality of the properties involved. The multi-year extension was obtained with a very modest additional capital commitment to the properties, and gives us the necessary time and financial flexibility to find the best solution for releasing the third property and then refinancing the loan. This extension when coupled with the earlier discounted payoff of the junior note is a terrific outcome for CapLease and our stockholders.”

Pursuant to the extension, the Company agreed with the lender that any cash flow shortfalls from the properties after debt service during the extension term will be funded through an approximately $5 million reserve previously deposited with the lender. With just the PA and CA properties leased, the $5 million reserve is sufficient to cover expected shortfalls for the full term of the extension. The Company also agreed to pay substantially all excess cash flows from the properties to reduce the principal amount of the debt. The Company is permitted to prepay the loan at any time without payment of a penalty of premium to the lender.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 16,782.01 +309.64 1.88%
S&P 500 1,988.08 +36.72 1.88%
NASDAQ 4,782.5170 +74.7420 1.59%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs