AUSTIN, TEXAS —An agreement has been reach between Thomas Properties Group, Lehman Brothers and California State Teachers’ Retirement System (CalSTRS) for the refinancing of the Austin Portfolio, a 10-property, 3.5 million-square-foot office portfolio located in Austin. The portfolio’s $292.5 million credit facility was replaced by an unfunded $100 million commitment from Lehman Brothers, with $60 million of new senior secured priority financing contributed by the partners. Proceeds from the recapitalization are being used to acquire and retire $80 million in third-party term loan debt. As part of the transaction, all pending motions brought on behalf of the ownership group in Lehman Brothers’ bankruptcy case were resolved. Lehman Brothers will retain a 50 percent interest in the portfolio, while Thomas Properties Group holds a 6.25 percent interest indirectly through its joint venture with CalSTRS. Douglas Snyder of California-based Cox Castle & Nicholson LLP assisted in the debt restructuring.
137
previous post