financial flexibility
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NEWS RELEASE
Campus Crest Communities Further Enhances Financial Flexibility with New Financings- Increases Revolving Credit Facility to $150 Million and Converts it to an Unsecured Facility
- Completes Three Freddie Mac Financings for a Total of $48.5 Million
CHARLOTTE, N.C., Sep 08, 2011 (BUSINESS WIRE) -- Campus Crest Communities, Inc. (NYSE:CCG), a leading developer, builder, owner and manager of high-quality, purpose-builtstudent housing under The Grove(R) brand, today announced that it has closed on an amendment to their revolving credit facility with its current lender group led by Citigroup GlobalMarkets Inc., Raymond James Bank, FSB and Barclays Capital. It has also completed three Freddie Mac financings on three previously unencumbered properties, for total proceeds of$48.5 million.
The credit facility has been increased to $150 million, with an accordion feature that can increase the size of the facility by an additional $175 million to $325 million. The formerly securedfacility is now unsecured and was extended by one year with the option for an additional one year extension, providing a new three year term. Amounts outstanding under the credit facilitybear interest at a floating rate equal to LIBOR plus a spread which ranges from 175 to 250 basis points indexed on the Company's leverage ratio. The Company intends to use the newfacility to fund expansion and construction of new properties.
The Freddie Mac financings are the beginning of a new relationship for the Company. All three financings are for a period of seven years. The properties they encumber and the rates areas follows:
Property Amount Rate
Nacogdoches, TX $17.2 million 5.01%Ellensburg, WA $16.1 million 5.10%Greeley, CO $15.2 million 4.29%.
Campus Crest's Company's Chief Financial Officer Donnie Bobbitt stated, "With these two transactions, we have greatly improved our financial flexibility during a challenging economicperiod. We have enhanced our liquidity position, reduced the cost of borrowing under the credit facility, and accessed another important source of capital with the Freddie financings, all ofwhich will support our growth initiatives. We are encouraged by the support of our bank group and the underlying value they see in our properties, and in our ability to operate as a verticallyintegrated student housing enterprise. Furthermore, our access to Freddie Mac only further endorses the markets we serve and the quality of our projects."
About Campus Crest Communities, Inc.
Campus Crest Communities, Inc. (NYSE: CCG) is a leading developer, builder, owner and manager of high-quality, purpose-built student housing properties located in targeted U.S.markets. The Company is a self-managed, self-administered and vertically-integrated real estate investment trust which operates all of its properties under The Grove(R) brand. CampusCrest Communities owns interests in 33 student housing properties containing approximately 6,324 apartment units and 17,064 beds. Since its inception, the Company has focused oncustomer service, privacy, on-site amenities and other lifestyle considerations to provide college students with a higher standard of living. Additional information can be found on theCompany's website at http://www.campuscrest.com.
Forward-Looking Statements
This press release, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A ofthe Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered bythe safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposed of complying with thesesafe harbor provisions. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerningmatters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects,""intends," "plans," "anticipates," "believes," "estimates," "predicts" or "potential" or the negative of these words and phrases or similar words or phrases which are predictions of or indicatefuture events or trends and which do not relate solely to historical matters. Forward-looking statements in this press release include, among others, statements about outlook for FFO,growth opportunities and long term value creation. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties, assumptions andcontingencies, many of which are beyond the Company's control that may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect the Company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, except as otherwise requiredby federal securities laws, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, newinformation, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company's future results to differ materially from anyforward-looking statements, see the risk factors discussed in the Company's most recent Annual Report on Form 10-K, as updated in the Company's Quarterly Reports on Form 10-Q.
SOURCE: Campus Crest Communities, Inc.
Campus Crest Communities, Inc.Investor Relations
