Frankfurt and Amsterdam-listed Eurocastle Investment has refinanced its EUR 175 mln corporate loan facility which is now to mature in its entirity by 30 June 2011. The company said that the interest rate on the loan has increased from 2% to 8% over three-month Euribor and financial covenants have been substantially renegotiated.
Frankfurt and Amsterdam-listed Eurocastle Investment has refinanced its EUR 175 mln corporate loan facility which is now to mature in its entirity by 30 June 2011. The company said that the interest rate on the loan has increased from 2% to 8% over three-month Euribor and financial covenants have been substantially renegotiated.
Eurocastle expects to try to raise additional capital in the near to medium term and, under the terms of the facility, is required to raise at least EUR 15.4 mln in additional capital. The company expects this to be raised primarily from existing shareholders as it has already secured a conditional undertaking from a major shareholder in relation to EUR 15.4 mln in new capital.
Eurocastle Investment Limited is an investment company which primarily owns and manages German commercial real estate assets.
