ANN, sold 2 CRE loans, good news in regards to being able to make their payment to Credit Suisse, but looks like these were sold at 27% their book value, I suppose they had no other choice.
Rubicon Europe Trust Group (ASX: REU) – Sale of two CRE loan assets for €45.1 million (A$73.8 million) (1) Rubicon Europe Trust Group (REU) has entered into a binding agreement to sell two of its commercial real estate (CRE) loan assets for approximately €45.1 million (A$73.8 million) (1). The sale prices are as follows: CRE loan Par value(2) Consideration % of par value Sale price Ashbourne B Note £25,000,000 73% £18,250,000 Helsinki B1 and B2 Notes €30,249,868 73% €22,082,404 The agreement is conditional on obtaining certain consents from the borrowers and senior lenders. Settlement is scheduled to occur on 3 June 2008. The entire proceeds of the CRE loan asset sales will be used to retire debt under the Credit Suisse loan warehouse facility, which will reduce the amount outstanding under the facility from approximately €113.3 million (A$185.6 million) to approximately €68.3million (A$111.8 million)(1). This means that, consistent with the revised facility terms announced on 17 March 2008, no further repayments to Credit Suisse will be required until 15 October 2008, when a further repayment of approximately €28 million will be required. Following completion of the sale of the two CRE loan assets, REU’s portfolio (by carrying value) will comprise approximately 75% office properties with a weighted average lease duration of approximately
REU Price at posting:
0.0¢ Sentiment: None Disclosure: Held