CALGARY, Alberta–(BUSINESS WIRE)–Walton Westphalia Development Corporation (the “Corporation”) announced today that the refinancing (the “Refinancing”) of the Corporation’s debt relating to the Westphalia project (the “Project”), has been completed. Capitalized terms used in this news release and not defined herein have the meanings given to them in the unaudited condensed interim consolidated financial statements of the Corporation for the three and nine months ended September 30, 2018.
The Refinancing included:
1. Fully funding the available principal amount under the New Loan Program, to the maximum of US$30,000,000. The New Loan Program matures in June 2021.
2. The Corporation obtaining a new, non-revolving, US$27,000,000 senior loan (the “Senior Loan”) from a Canadian-based financial institution. The initial advance of the Senior Loan funded the full repayment of the Mezzanine Loan as of November 30, 2018, paid for fees and transaction costs associated with the Senior Loan and provided working capital to the Project.
Future advances of the Senior Loan are available to fund monthly interest expenses owing under the Senior Loan and a contingency for additional development costs. Subject to meeting certain conditions tied to the remaining cost to complete Phase 1 of the Project, additional amounts may be available under the Senior Loan for repaying other debt of the Project outstanding at a higher interest rate.
The Senior Loan has a maturity date of November 30, 2019 (12 months from the date of advance) and is expected to be repaid within the term of the loan by contracted lot and land sales, including townhome lots in Phase 1 and the bulk sale of the Phase 1A lands.
In conjunction with the proceeds of the tax increment financing (TIF) bonds issued by Prince George’s County Maryland for public infrastructure projects in and around Westphalia Town Center, the Refinancing allows the Corporation to execute on its plan of developing Phase 1 of the Project and unlocking the potential of Westphalia Town Center.
The Corporation’s President, CEO, and Chairman Bill Doherty said, “The refinancing removes barriers to the Corporation continuing as a going concern by providing extended loan maturities and working capital, allowing the Project to continue with its development plan. I would like to thank our old and new financial partners for their support of the Westphalia Town Center project.”
Currently the Corporation is delivering residential townhome lots to three homebuilders, recruiting retail tenants, and evaluating offers from multiple partners for various uses in future phases of the Corporation’s Project in Prince George’s County, Maryland.
The Corporation is managed by Walton Global Investment Ltd. 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’s 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.