Greystone Housing Impact Investors LP Announces New Secured Financing Transaction
November 06 2023 - 4:15PM
Greystone Housing Impact Investors LP (NYSE: GHI) (the
“Partnership”) announced today that on November 1, 2023, it
completed a new secured financing transaction (the “TEBS Residual
Financing”) secured by its residual interests in three Tax Exempt
Bond Securitization financings (“TEBS Financings”) with Freddie
Mac. The securitization involved the sale of the TEBS Financings
residual interests to the Wisconsin Public Finance Authority (the
“Issuer”), which then issued and sold $61.5 million of senior
Affordable Housing Multifamily Certificates Class B-1 Certificates
(“Class B-1 Certificates”) to unaffiliated investors. The
Partnership retained $20.5 million of residual Affordable Housing
Multifamily Certificates Class B-2 Certificates that were also
issued by the Issuer. The Partnership received net proceeds of
approximately $60.4 million after payment of transaction-related
costs, the majority of which was used to pay off other debt of the
Partnership that has been previously secured by a pledge of the
TEBS Financings residual interests.
The $61.5 million Class B-1 Certificates
represent secured financing of the Partnership for financial
reporting purposes and are entitled to interest at a fixed rate of
7.125% per annum and certain principal payments from the assets
within the TEBS Residual Financing. The Partnership is entitled to
all residual cash flows of the TEBS Residual Financing after
payments to the Class B-1 Certificates and trustee expenses of
0.03% per annum. The term of the Class B-1 certificates will end
upon the earlier of repayment of the $61.5 million stated amount of
the Class B-1 Certificates or July 25, 2034.
“The closing of the TEBS Residual Financing
provides many benefits to the Partnership,” said Kenneth C.
Rogozinski, Chief Executive Officer of the Partnership. “This new
debt financing provides non-recourse, non-mark-to-market financing
that provides effective interest cost savings of approximately 3.9%
per annum compared to our prior variable-rate debt financing
program previously secured by the same collateral.”
About Greystone Housing Impact Investors LP
Greystone Housing Impact Investors LP was formed
in 1998 under the Delaware Revised Uniform Limited Partnership Act
for the primary purpose of acquiring, holding, selling and
otherwise dealing with a portfolio of mortgage revenue bonds which
have been issued to provide construction and/or permanent financing
for affordable multifamily, seniors and student housing properties.
The Partnership is pursuing a business strategy of acquiring
additional mortgage revenue bonds and other investments on a
leveraged basis. The Partnership expects and believes the interest
earned on these mortgage revenue bonds is excludable from gross
income for federal income tax purposes. The Partnership seeks to
achieve its investment growth strategy by investing in additional
mortgage revenue bonds and other investments as permitted by its
Second Amended and Restated Limited Partnership Agreement, dated
December 5, 2022, taking advantage of attractive financing
structures available in the securities market, and entering into
interest rate risk management instruments. Greystone Housing Impact
Investors LP press releases are available at
www.ghiinvestors.com.
Safe Harbor Statement
Information contained in this press release contains
“forward-looking statements,” which are based on current
expectations, forecasts and assumptions that involve risks and
uncertainties that could cause actual outcomes and results to
differ materially. These risks and uncertainties include, but are
not limited to, risks involving current maturities of our financing
arrangements and our ability to renew or refinance such maturities,
fluctuations in short-term interest rates, collateral valuations,
mortgage revenue bond investment valuations and overall economic
and credit market conditions. For a further list and description of
such risks, see the reports and other filings made by the
Partnership with the Securities and Exchange Commission, including
but not limited to, its Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q, and Current Reports on Form 8-K. Readers are
urged to consider these factors carefully in evaluating the
forward-looking statements. The Partnership disclaims any intention
or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
INVESTOR CONTACT:
Andy GrierSenior Vice
President402-952-1235
MEDIA
CONTACT:
Karen
MarottaGreystone212-896-9149Karen.Marotta@greyco.com
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