Hovnanian Enterprises Inc. closed an offering of $785 million of senior secured notes due 2016. The notes and the guarantees will be secured on a first-priority lien basis by substantially all of the homebuilder's assets. In connection with the offering, K. Hovnanian terminated its revolving credit facility.
William Lyon Homes obtained a $206 million maximum principal senior secured term loan from Colony Capital LLC, and Colony Financial Inc. Colony Financial will fund $50 million of this loan facility alongside $156 million to be funded by the other participating investment funds managed by Colony Capital. Colony Capital and Colony Financial were selected to provide this first lien mortgage financing based on their extensive experience in real estate financing, competitive terms, timing, certainty of funding and the ability to negotiate and close the transaction in a short period.
Forest City Enterprises Inc. completed a $200 million offering of convertible senior notes due 2016. Forest City estimates that the net proceeds will be approximately $177.3 million and expects to use the funds to reduce outstanding borrowings on the company's $750 million revolving credit facility and for general corporate purposes, which, depending on prevailing market conditions, could include the repayment of debt with earlier maturities.
The Benenson Capital Co. secured a $135 million first mortgage for the revitalization of the Cross County Shopping Center in Yonkers, NY. Benenson Capital is managing member of the ownership group. The five-year, fixed-rate loan was provided by Prudential and New York Life. The 1 million-square-foot, open-air shopping destination opened in 1954, is currently undergoing a major $225 million redevelopment. Plans for the revitalization of the center include the 93,000-square-foot expansion of the existing Macy's department store. California-based Macerich Co. is managing the on-going redevelopment project.
Robertson Properties Group, a West Los Angeles-based real estate development/property management firm received $6.73 million loan to refinance a 320-unit apartment complex in Durham, NC. Matt Douglas of Venture West Funding arranged the Freddie Mac loan with Capmark Finance. The garden-style, 1985-built apartments consist of 32 buildings over 26.65 acres.
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