The senior notes will mature in 2009. The proceeds allocation will be determined in the coming weeks, Keira B. Moody, Crescent's vice president of investor relations, tells GlobeSt.com. As of Dec. 31, 2001, Crescent's debt on its $400-million credit line totaled $283 million, but that number fluctuates daily, she stressed. One of the lead reasons for the action is the maturity of $150 million in unsecured bonds, due in September, and $63.5 million in a secured note coming due in December. Senior note proceeds would effectively eliminate the debt against the Marriott Denver, she says.
Moody says GMAC still holds $220 million in partnership units out of $275 million bought in 2000. The plan is to redeem part of those units.
Moody says Crescent has been "monitoring the market" and feels it is a good time to go out on the capital-raising circuit for unsecured bonds. The team is in the final stage of the needed work on the prospectus.
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