Gramercy amends loan to remove financial covenants, change maturity

By Sara Rosenberg

New York, April 8 - Gramercy Capital Corp. amended its secured credit facility, eliminating financial covenants and resetting the maturity date to March 2011 with no further extension options, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

In addition, the amendment eliminated mark-to-market and related margin call provisions, cross-default provisions and recourse liability other than in connection with certain non-recourse carveouts that are capped at $10 million.

As part of the amendment, the company agreed to cause any cash distributions in respect of two of its fee ownership joint ventures in Manhattan to be paid into a cash collateral account as security for a letter-of-credit to support obligations of one of its CDOs.

Also, the company collateralized with $13 million in cash three letters of credit to support mortgage interest payment obligations of its affiliates.

Pricing terms under the facility remain unchanged.

The amendment was completed on April 7.

Wachovia is the administrative agent on the deal.

Gramercy is a New York-based commercial real estate finance and property investment company.

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