Bloomberg News

Capital Trust Modifies Credit Pacts, Terminates Goldman Loan

March 17, 2009

Capital Trust Inc. (CT:US), a real estate investment trust whose chairman is billionaire Sam Zell, restructured credit facilities and terminated its revolving loan with Goldman Sachs Mortgage Co.

Capital Trust modified its credit facilities with JP Morgan, Morgan Stanley Bank NA and Citigroup, changing maturity dates to March 16, 2010, with two, one-year extension options, the New York-based trust said yesterday in a statement. The trust also paid 3 percent of the $579.9 million outstanding.

The restructured facilities include covenants that prohibit most new balance sheet investments, new debt and the payout of cash dividends except to maintain real estate investment trust status. The covenants also limit cash compensation to employees and require minimum liquidity levels, according to the statement.

Capital Trust’s secured credit facility with Goldman Sachs, which had $88.5 million outstanding, was terminated. The company’s secured credit facility with UBS Real Estate Securities Inc., with $9.7 million outstanding, was terminated on Feb. 25, according to the statement.

The trust also amended and restated its $100 million, facility with WestLB AG as a syndicate, extending the maturity date to March 2010, with two, one-year extensions, according to a filing (CT:US) yesterday with the U.S. Securities and Exchange Commission.

The changes to Capital Trust’s bank facilities came as the company posted a fourth-quarter net loss (CT:US) of $51.2 million, or $2.30 a share, compared with net income of $28.6 million, or $1.62, a year earlier, according to the statement.

To contact the reporter on this story: Jamie McGee in New York at jmcgee8@bloomberg.net;

To contact the editor responsible for this story: Robert Burgess at bburgess@bloomberg.net


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