Mobile Infrastructure Completes $87.5 Million in Refinancings That Strengthen Its Financial Position and Increase Its Financial Flexibility
December 11 2024 - 9:00AM
Business Wire
- Aligned debt with core asset values and extended
maturities
- Added to cash on hand and released encumbrances on three
parking assets
Mobile Infrastructure Corporation (NYSE American: BEEP)
("Mobile", "Mobile Infrastructure" or the "Company"), a leading
owner and operator of parking facilities across the United States,
today announced the successful completion of $87.5 million in
refinancing transactions. The transactions were completed with two
separate loans at a weighted average interest rate of 7.69%, with
various maturities between 2027 and 2034.
With the net proceeds obtained from these refinancings, Mobile
repaid a secured loan with KeyBank Capital Markets, which had an
outstanding principal balance of $48.8 million and an interest rate
of 8.19%, and two additional loans secured by parking assets in
Chicago, Illinois and Cincinnati, Ohio, with an aggregate principal
balance of $31.3 million. Substantially all of Mobile
Infrastructure’s 2024 and 2025 debt maturities have now been
extended.
“The completion of these transactions provides important
financial flexibility as we work to advance our long-term growth
strategy,” said Stephanie Hogue, President of Mobile Infrastructure
Corporation. “We have strengthened our balance sheet by extending
our debt maturities and aligning them more closely with the
intrinsic value of our key assets, while maintaining our leverage
ratio at less than 55% Loan-to-Value. The addition of two new
lending partners underscores the attractiveness of our asset
portfolio and broadens our financial relationships and access to
capital.”
The Company also announced that it has successfully completed
the buyout of a minority partner in one of its assets at an
attractive valuation. “We can now more readily reposition this
asset while reinvesting the cash it generates that previously would
have been distributed to our partner. We will seek out similar
opportunities in the future as we continue to assess and refine our
asset portfolio,” Ms. Hogue concluded.
The refinancing initiatives include a multi-asset Commercial
Mortgage-Backed Securities (CMBS) pool transaction, as well as the
refinancing of a single-asset CMBS with a large regional bank. Both
represent new relationships with lenders who can provide long-term
capital.
These refinancing efforts are part of Mobile Infrastructure's
ongoing commitment to optimize its capital structure and deliver
value to shareholders. By extending debt maturities and aligning
them with the Company's core asset values, Mobile Infrastructure is
better positioned to execute its strategic initiatives and
capitalize on future growth opportunities.
About Mobile Infrastructure Corporation
Mobile Infrastructure Corporation is a Maryland corporation that
owns a diversified portfolio of parking assets primarily located in
the Midwest and Southwest United States. As of September 30, 2024,
the Company owned 41 parking facilities in 20 separate markets
throughout the United States, with a total of approximately 15,300
parking spaces and approximately 5.2 million square feet.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements are based on current expectations,
estimates, and projections about the industry and markets in which
Mobile Infrastructure operates, management's beliefs, and
assumptions made by management. Forward-looking statements are not
guarantees of future performance and involve certain risks and
uncertainties, which are difficult to predict. Actual outcomes and
results may differ materially from what is expressed or forecasted
in such forward-looking statements. Factors that could cause actual
results to differ materially include, but are not limited to, the
Company's ability to implement its business strategy, economic
conditions, competitive environment, and other risks detailed from
time to time in the Company's filings with the Securities and
Exchange Commission. These forward-looking statements speak only as
of the date of this press release, and Mobile Infrastructure
undertakes no obligation to update or revise these statements,
except as may be required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20241211216974/en/
David Gold Lynn Morgen beepir@advisiry.com (212) 750-5800
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