CALGARY, Alberta--(BUSINESS WIRE)--Walton Westphalia Development Corporation (the “Corporation”) announces that it has refinanced its multi-use project in Prince George’s County, Maryland. This refinancing allows the Corporation to continue developing the project, delivering lots to homebuilders, preparing land for retail and commercial uses and leveraging the current momentum at Westphalia Town Center.
The Corporation negotiated this refinancing while it anticipates the advancement of funds from MCFI Global Fund Westphalia, LLC (“MCFI”) later this year, as previously announced. Through the raising of EB-5 capital, the funds advanced from MCFI will be used by the Corporation to pay off, or potentially pay down, the senior loan.
Under the terms of the refinancing, the senior lender has agreed to extend the maturity from June 30, 2017 to November 15, 2017. A 0.5% extension fee will be due to the senior lender at closing with no change in interest rate. The mezzanine lender has agreed to increase their loan by $7mm and to extend the maturity from July 6, 2017 to November 15, 2017. The rate on the mezzanine loan will increase from 15% to 17.5% and have a 3% fee at repayment. Approximately $5.8mm of the $7mm will repay the senior lender and the remainder will be used to fund costs.
In an effort to build a great community for Prince George’s County, as well as to alleviate traffic problems along the Route MD-4 corridor, Walton is continuing to work closely with the County staff on a potential public financing option that would provide bond sale proceeds for transportation infrastructure improvements. Whether through a tax increment financing (TIF) plan of special obligation bonds (which the Prince George’s County Council voted unanimously in favor of the TIF by establishing the Westphalia Town Center Development District on November 1, 2016), or through another type municipal bond issuance, the Corporation appreciates the County’s desire to invest in the fast growing MD-4 corridor.
The project is currently delivering lots to three homebuilders under purchase and sale agreements that cover all of the 346 townhomes in Phase I. The builders are all on, or ahead of, schedule with their purchase of lots. The refinancing allows the Corporation to continue to deliver lots and build momentum at the project.
The Corporation is managed by Walton Asset Management L.P. and the development of the project is managed by Walton Development & Management (USA), Inc., both of which are members of the Walton Group of Companies.
The Walton Group of Companies (“Walton”) is a multinational real estate investment, planning and development group concentrating on the research, acquisition, administration, planning and development of strategically located land in major North American growth corridors.
Walton has been in business for over 35 years and takes a long-term approach to land planning and development. Walton’s industry-leading expertise in real estate investment, land planning and development uniquely positions Walton to responsibly transition land into sustainable communities where people live, work and play.
The Walton Group manages 21 active developments and administers or manages over 108,000 acres of land in North America.
Its communities are comprehensively designed in collaboration with local residents for the benefit of community stakeholders. Its goal is to build communities that will stand the test of time: hometowns for present and future generations.
For more information about Walton Westphalia Development Corporation, please visit www.sedar.com. For more information about Walton, visit Walton.com.
This news release, required by Canadian laws, does not constitute an offer of securities, and is not for distribution or dissemination outside Canada. This news release contains forward looking information, and actual future results may differ from what is disclosed in this news release. The risks, uncertainties and other factors that could influence results are described in the prospectus and other documents filed with Canadian securities regulatory authorities and available online at www.sedar.com.