Gramercy Capital Corp. today announced that it has amended its secured credit facility with Wachovia Bank, National Association (“Wachovia”). Under the amendment:
– The financial covenants in the credit agreement have been eliminated.
– Mark-to-market and related margin call provisions have been eliminated.
– The cross-default provisions relating to the Company’s other indebtedness have been eliminated.
– The recourse liability to the Company has been eliminated other than in connection with certain non-recourse carveouts which are capped at $10 million.
– Consent to the Company’s internalization of GKK’s external manager (“GKKM”) has been granted by Wachovia subject to certain agreed-upon parameters.
– The Company has agreed to cause any cash distributions in respect of two of its fee ownership joint ventures in Manhattan to be paid into a cash collateral account at Wachovia as security for a letter of credit issued by Wachovia to support certain obligations of one of the Company’s CDOs. Funding of the cash collateral accounts will be reduced or eliminated upon reduction or elimination of the letter of credit obligations.
– The Company collateralized with $13.0 million in cash three letters of credit issued by Wachovia to support the mortgage interest payment obligations of certain Company affiliates.
– The pricing terms remain unchanged under the facility, and the maturity date was re-set to March 2011 with no further extension rights.
Additionally, the Company amended its master repurchase facility today with an affiliate of Goldman, Sachs & Co. (“Goldman”). Under the amendment:
– The financial covenants in the master repurchase agreement (“MRA”) and the related guaranty have been eliminated.
– The cross-default provisions relating to the Company’s other indebtedness have been eliminated.
– The recourse liability to the Company has been eliminated other than in connection with certain non-recourse carveouts.
– Consent to the Company’s internalization of GKKM has been granted by Goldman.
– The Company has agreed to pay $4.0 million in cash to Goldman to reduce the repurchase price of one of the three loan assets under the MRA, thereby reducing the aggregate outstanding repurchase price to $14.7 million.
– Sale proceeds in respect of the loan assets under the MRA will reduce the aggregate repurchase price of all such assets until such repurchase price is zero, with the remainder, if any, to be distributed to the Company.
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