"We didn't expect it to immediately boost our rating," Keira Moody, Crescent's vice president of investor relations, tells GlobeSt.com. "But it positions us for a favorable upgrade in the future." S&P, as a result of the refinancing, did take Crescent off a negative credit watch.

Effectively, the transaction reduces borrowing costs, increases the lending base and provides a $400-million credit line, explains Moody. Overall, the transaction lowers borrowing costs by 25 basis points and extends debt maturity from 4.2 years to 5.1 years. The deal also opens doors to lenders that Crescent previously had not used.

"We have strengthened our long-standing relationship with Fleet Securities Inc. (the lead bank) and also formed significant new credit relationships with JP Morgan, Banc of America Securities LLC and Deutsche Banc Alex Brown Inc.," John C. Goff, Crescent CEO, emphasizes in a prepared statement.

Fleet and JP Morgan are the lead lenders, providing the $400-million, unsecured revolving credit line. That line carries a variable interest rate of 187.5 basis points over LIBOR and will mature in 2004. There is a one-year extension option.

Fleet and Banc of America hold the lead on $275 million of a secured term loan, with Deutsche Banc Alex Brown acting as co-arranger and documentation agents. That component carries a variable interest rate of 325 basis points over LIBOR. It matures in 2005.

Deutsche Banc also is the lead for a $220-million secured term loan, scheduled to mature in 2004. The term loan, which includes two one-year extensions, has a variable interest rate of 234 basis points over LIBOR. The loan is earmarked for inclusion in a CMBS securitization by Deutsche Banc.

The refinancing's fourth component is a $75-million secured term loan, jointly provided by Deutsche Banc and Fleet. The loan, which matures in 2002, carries a variable interest rate of 300 basis points over LIBOR.

S&P, in making its announcement, says the stable assessment is directly related to disposition of non-core assets, lengthening the debt retirement schedule and lowering exposure to variable rate debt. Crescent is poised to be less reliant upon disposition proceeds to finance near-term strategic growth goals, says S&P.

Moody tells GlobeSt.com that Crescent's B rating and BB for corporate have been in place for more than a year. The transaction puts flexibility into the balance sheet, she says, even though "it was pretty much a one-for-one swap.

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