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Ginn and Credit Suisse Modify First Lien Mortgage
Lenders advance Ginn another $979,500 for Tesoro and Quail West
By Toby Tobin
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| Ginn Credit Suisse Negotiations Apparently Not Successful |
Palm Coast, Florida – October 7, 2008 – A document dated September 8, 2008 and filed September 26, 2008 in Collier County, Florida reveals that the $675 million Credit Suisse credit facility had been modified to allow Ginn affiliated entities to borrow an additional $979,500. The modification was limited to Ginn's Tesoro and Quail West properties.
The ongoing negotiations between Credit Suisse, representing a pool of private investors, and the Ginn Company over Ginn's June 30, 2008 default on a $675 million credit facility have prompted a spat of rumors and speculation, some of which can be found on GoToby.com. Since Ginn is a private company, they do not have to reveal the content or progress of their negotiations. The number of phone calls and emails I've received from Ginn property owners indicates they want to know more. Public filings do give us a glimpse into the complex workings.
Ginn and Credit Suisse apparently worked out an agreement for limited additional funding by the lender for two Ginn properties; Tesoro in Port St. Lucie and Quail West in Naples. Laurelmor and Ginn sur Mer are not included in the modification document. We get no hint of progress of the overall negotiations or of their expected outcome. But the filing gives us a glimpse of the complexity of the credit facility and sheds light on Credit Suisse's role. The Ginn/Credit Suisse Modification Agreement Paragraph A states:
"Ginn-LA CS Borrower, LLC, a Delaware limited liability company, and Ginn-LA Conduit Lender, Inc., a Delaware corporation (collectively, the "Borrower"), have entered into that certain First Lien Credit Agreement, dated as of June 8, 2006, among the Borrower, Credit Suisse, Cayman Islands Branch, as the Administrative Agent and Collateral Agent, Credit Suisse Securities (USA) LLC, as Paying Agent, Fronting Bank, Sole Lead Arranger and Lose Bookrunner, and each Lender from time to time a party thereto (collectively, the "Lenders")……. View the entire document.
Watch GoToby.com for continuing updates on the unfolding story.
Reader Comments
parade
So I guess the "we hate ginn and want all thier properties and employees to crumble" parade has been rescheduled for a future date?
Meegan, you will be leading that parade right?
Tom
So I guess the "we hate ginn and want all thier properties and employees to crumble" parade has been rescheduled for a future date?
Meegan, you will be leading that parade right?
Tom
Posted by Tom Mayflower
Is that you sweeping up behind the parade?
I hope the economy recovers, so things get better for everyone. But, Tom, you must realize the bubble has burst and things look bad for many. The Ginndom was out of control before the economy went south, so join the parade before you end up sweeping up after it. Remember it was your idea for a parade, I like it, do you know of any marching bands that would come.
I hope the economy recovers, so things get better for everyone. But, Tom, you must realize the bubble has burst and things look bad for many. The Ginndom was out of control before the economy went south, so join the parade before you end up sweeping up after it. Remember it was your idea for a parade, I like it, do you know of any marching bands that would come.
Posted by George Meegan
parade 2
George
I know that this particular developer has been known for a 2 sided mirror approach, and that's what causes a lot of this disaray I believe.
If this was happening in a metropolis for example I would be on your side 100%, given other opportunities/companies.
But with WCI and Centex all but gone, and nothing left but bobby and a bunch of saturated resellers... if you are in the hospitality or resale business and have ambitions of staying in PC, he is
just about it.
So lets root that he sticks around and continues to develop, but maybe clean up his act a bit?
But thats like asking a lion not to hunt isn't it george?
Tom
George
I know that this particular developer has been known for a 2 sided mirror approach, and that's what causes a lot of this disaray I believe.
If this was happening in a metropolis for example I would be on your side 100%, given other opportunities/companies.
But with WCI and Centex all but gone, and nothing left but bobby and a bunch of saturated resellers... if you are in the hospitality or resale business and have ambitions of staying in PC, he is
just about it.
So lets root that he sticks around and continues to develop, but maybe clean up his act a bit?
But thats like asking a lion not to hunt isn't it george?
Tom
Posted by Tom Mayflower
A developer borrows to have the funds for building and property development. When one borrows, one must repay the lender. What happensw when the borrower can not make an obligated payment? He borrows additional funds.
And people wonder why we are experiencing a financial melt down.
Posted by Gene Holland