Gramercy Capital Corp. Increases, Amends and Restates $175 Million Unsecured Line of Credit Facility 
NEW YORK (REIT Media) July 2, 2007 - Gramercy Capital Corp. (NYSE:GKK) today announced that it closed an amendment and restatement of its existing unsecured credit facility arranged by KeyBanc Capital Markets, which increased the facility to $175 million from $100 million, reduced the interest rate to LIBOR plus 1.65% from LIBOR plus 2.10%, extended the maturity date to June 28, 2010, and eased certain financial and other restrictive covenants of the credit facility. The facility is available to the Company for funding investments and general corporate purposes including working capital financing. Current amounts outstanding under the facility are approximately $90 million, which the Company expects to retire later in July with a portion of the cash proceeds from the just-announced sale to SL Green Realty Corp. (NYSE:SLG) of Gramercy's 45% interest in its One Madison Avenue joint venture.
Bob Foley, Chief Financial Officer of Gramercy, commented, "We value the sound, ongoing relationship we have with KeyBank and with the other financial institutions to which KeyBank syndicated the credit facility. The upsized and improved line of credit provides Gramercy the financial flexibility to capitalize on favorable market conditions, advance the Company's investment initiatives, and generate a significant reduction in its cost of funds."
Company Profile
Gramercy is a commercial real estate specialty finance company that specializes in the direct origination and acquisition of first mortgage loans, subordinate mortgage participations, mezzanine loans, preferred equity, real estate securities and net lease investments involving commercial property throughout the United States. Gramercy Capital Corp. is headquartered in New York City, and has a regional investment office in Los Angeles.
Forward-Looking Information
This press release contains forward-looking information based upon the Company's current best judgment and expectations. Actual results could vary from those presented herein. The risks and uncertainties associated with forward-looking information in this release include the strength of the commercial real estate property markets, competitive market conditions, unanticipated administrative costs, general and local economic conditions, interest rates, capital market conditions, bankruptcies and defaults of borrowers or tenants in properties securing the Company's investments, and other factors, which are beyond the Company's control. We undertake no obligation to publicly update or revise any of the forward-looking information. For further information, please refer to the Company's filings with the Securities and Exchange Commission.
Source: Gramercy Capital Corp.
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Jul.02.2007. 09:43
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