On its 8 1/8% repurchase offering, which closed Oct. 5, Post bought back $88 million in notes for $1,039.81 per $1,000. Post expects to pay investors by borrowing from its revolving credit facility, the company says in a prepared statement.
Post plans to record a charge of about $4 million in this year's fourth quarter on the early retirement of this debt. Post will replenish its credit facility from proceeds on the 5 1/8% notes sale.
The company also says it will record a third-quarter charge of about two cents per share on preliminary hurricane damage estimates at its five Central Florida properties. Post owns four properties in Tampa and one in Orlando with a total 2,468 units. The preliminary damage amount wasn't disclosed.
Also undisclosed by the developer was the identity of the Atlanta apartment community it failed to sell in the third quarter of this year. Post didn't cite a reason for the unsuccessful deal. "Real estate deals don't go through for a number of reasons," a Post representative tells Globest.com.
Post says it had expected to recognize a net gain of 40 cents per share in the third quarter of 2004 on the sale of the Atlanta apartment complex and the assumption of related debt associated with the deal. The developer plans to remarket the property at a near-future date.
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