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1.77 MB
Extraction Summary
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People
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Organizations
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Locations
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Events
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Relationships
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Quotes
Document Information
Type:
Financial report / debt schedule (likely part of an offering memorandum or annual report)
File Size:
1.77 MB
Summary
This document is page 104 of a financial report detailing the debt structure of KLC PropCo (Knowledge Learning Corporation) as of December 31, 2005. It outlines $699.4 million in CMBS debt and $150 million in Junior Mezzanine debt, noting that Greenstreet Real Estate Partners serves as the asset manager. The text details interest rates, maturity dates, and specific loan covenants regarding the 713 childhood education centers securing the debt.
Organizations (4)
| Name | Type | Context |
|---|---|---|
| Greenstreet Real Estate Partners |
Operates real estate investment functions for KLC PropCo; formerly Greenstreet Realty Partners, L.P.
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| KLC PropCo |
Entity holding the debt and properties (Knowledge Learning Corporation Property Co)
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| KLC OpCo |
Leases the centers from PropCo; separated entity (Knowledge Learning Corporation Operating Co)
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| Greenstreet Realty Partners, L.P. |
Previous name of Greenstreet Real Estate Partners
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Timeline (2 events)
Locations (1)
| Location | Context |
|---|---|
Relationships (2)
Greenstreet... provides asset management and consulting services for these centers to KLC PropCo.
Each of the centers securing the mortgage loan is leased to KLC OpCo pursuant to a master lease.
Key Quotes (3)
"Greenstreet Real Estate Partners will operate all of the real estate investment functions on behalf of KLC PropCo as detailed in the management agreement."Source
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Quote #1
"KLC PropCo is required to pay interest in cash on a monthly basis at a rate of 5.62%"Source
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Quote #2
"The CMBS debt consists of a $649.5 million mortgage loan and a $50.0 million senior mezzanine loan secured by 713 childhood education centers."Source
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Quote #3
Full Extracted Text
Complete text extracted from the document (2,537 characters)
Real Estate Company Operating Expenses
Greenstreet Real Estate Partners will operate all of the real estate investment functions on behalf of KLC PropCo as detailed in the management agreement. See "Related Party Transactions."
12.5. Debt Summary
The table below shows KLC PropCo's outstanding capitalization as of December 31, 2005.
KLC PropCo
Debt Capitalization
($ in millions) 12/31/05
Debt Capitalization
($ in millions) 12/31/05
Cash $ 24.5
CMBS Debt $699.4
Junior Mezzanine Debt¹ 150.0
Total KLC PropCo Debt $849.4
Junior Mezzanine Debt¹ 150.0
Total KLC PropCo Debt $849.4
Net Debt² $824.9
¹ Represents face value; book value is approximately $147.3 million.
² Represents total debt less cash.
² Represents total debt less cash.
12.6. Terms of the CMBS Debt
KLC PropCo has $699.4 million of CMBS debt which was arranged in connection with the separation from KLC OpCo. KLC PropCo is required to pay interest in cash on a monthly basis at a rate of 5.62% and must meet scheduled amortization requirements on a monthly basis and maturing December 1, 2015.
The CMBS debt consists of a $649.5 million mortgage loan and a $50.0 million senior mezzanine loan secured by 713 childhood education centers. The CMBS debt is nonrecourse KLC OpCo.
Each of the centers securing the mortgage loan is leased to KLC OpCo pursuant to a master lease. KLC PropCo has entered into asset management agreements with Greenstreet Real Estate Partners (formerly Greenstreet Realty Partners, L.P.) pursuant to which Greenstreet Real Estate Partners provides asset management and consulting services for these centers to KLC PropCo. KLC PropCo has the right under certain circumstances to release, substitute, sell and/or reinvest in properties securing the mortgage loan.
Prepayment of the CMBS debt is prohibited through January 1, 2007, after which prepayment is permitted in whole or in part, subject to a prepayment premium equal to the greater of 1% or an amount obtained based on a discount to treasury securities. After June 1, 2015, the CMBS debt may be prepaid in whole without premium or penalty.
The CMBS debt contains provisions that require KLC PropCo to reserve with the lender of the CMBS debt 50% of excess cash flow generated from the CMBS centers if EBITDA (as adjusted) for KLC OpCo falls below certain levels and 100% if EBITDA (as adjusted) for KLC OpCo falls below certain other levels.
12.7. Terms of the Junior Mezzanine Debt
The Junior Mezzanine debt has a face value of $150 million (and was purchased for approximately $147.0 million, reflecting a 2% discount to face value), substantially all of which was provided by the
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