Campus Crest Communities, Inc. (NYSE:CCG) (the “Company”) today announced it has completed Freddie Mac financings on The Grove at Clarksville, Tennessee and The Grove at Columbia, Missouri for total proceeds of $40.1 million. The proceeds from the financings were used to reduce outstanding balances under the Company’s revolving credit facility. Both properties were developed by the Company and opened in August 2011. The construction debt on the properties was previously paid off in conjunction with the Company’s preferred equity offering in February 2012. This transaction represents the second series of permanent financings the Company has completed with Freddie Mac, having closed financings on three unencumbered assets for total proceeds of $48.5 million in the third quarter of 2011. The table below sets forth more information about the financings and the properties encumbered in the transaction:
“Freddie Mac has once again been a great partner and advocate for the underlying value of our properties,” said Donnie Bobbitt, the Company’s Chief Financial Officer. “With our second series of Freddie Mac financings, we have taken advantage of historically low long-term rates. Additionally, as a result of the financings and recently closed common equity offering, the Company has enhanced its liquidity position and secured capital for future growth. Given the uncertain macroeconomic backdrop, we believe both transactions were proactive measures that improved the strength of the balance sheet.”
|Property Information||Loan Information|
|Property||University Served||Beds||Amount ($mm)||Rate||Term (yrs)||Int. Only (yrs)|
|The Grove at Clarksville||Austin Peay State University||560||$16.350||4.03%||10||2|
|The Grove at Columbia||University of Missouri||632||$23.775||3.83%||10||NA|
About Campus Crest Communities, Inc.Campus Crest Communities, Inc. is a leading developer, builder, owner and manager of high-quality, purpose-built student housing properties located close to college campuses in targeted U.S. markets. The Company is a self-managed, self-administered and vertically-integrated real estate investment trust which operates all of its properties under The Grove® brand. The Company owns interests in 33 operating student housing properties containing approximately 6,324 apartment units and 17,064 beds. Since its inception, the Company has focused on customer service, privacy, on-site amenities and its proprietary residence life programs to provide college students across the United States with a higher quality of living. Additional information can be found on the Company's website at http://www.campuscrest.com. Forward-Looking Statements This press release, together with other statements and information publicly disseminated by the Company, contains certain 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. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposed of complying with these safe harbor provisions. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Forward-looking statements in this press release include, among others, statements about the Company’s liquidity position and capital for future growth. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company’s control that may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect the Company’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, except as otherwise required by federal securities laws, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statements, see the risk factors discussed in the Company’s most recent Annual Report on Form 10-K, as updated in the Company’s Quarterly Reports on Form 10-Q.