The locally based firm sold a series of senior notes that will be maturing in three-year to 10-year stages. Wachovia Securities of Atlanta handled the private placement. The entire issue was sold.
"JOE (the firm's New York Stock Exchange symbol) received a great reaction from institutional investors, particularly as they have become more familiar with us and the unique competitive advantages we enjoy (in the commercial real estate marketplace)," Peter S. Rummell, St. Joe chairman/CEO, says in a prepared statement.
The company "sought this financing to provide additional financial flexibility by adding a layer of fixed-rate, longer-term debt to its balance sheet," says Rummell, a former Walt Disney World division executive.
St. Joe will use the new money to reduce outstanding variable rate bank debt and for general corporate purposes. "We're pleased we were able to complete this offering with this fine group of investors," Rummell says. "We appreciate their confidence in both our strategy and our execution, as expressed through their willingness to provide financing at investment grade rates."
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
