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Real estate-focused Crescent Resources seals deal with Anchorage Capital, MatlinPatterson

20 Aug 2012

Real estate development company Crescent Resources has completed a private offering of $350m of senior secured notes due in 2017. In addition, the company closed on $50m of a $100m equity commitment from its existing private equity backers, Anchorage Capital Master Offshore and MatlinPatterson Global Opportunities Partners III, and entered into a new $50m revolving credit facility.

The company said it will use the proceeds to make targeted investments, primarily in the residential and multi-family sectors, and to refinance existing debt.

“We have a mandate for growth, the financial stability and ability to support it, and an experienced and talented team to capitalise on new investments in our target markets,” said Todd Mansfield, president and CEO. “Positive population growth and an attractive cost of living in these markets are increasing demand for both rental and for sale housing, and Crescent is well-suited to meet that demand.”

“The completion of our offering and the new equity investment demonstrate the confidence institutional investors and our principal equity sponsors have in Crescent Resources, our market leadership and our growth strategy,” added Kevin Lambert, chief financial officer. “The additional capital from these transactions further positions the company for the acquisition of new land assets and for dynamic expansion now and well into the future.”

Crescent Resources currently has a “strong base of existing assets” it said, which, when combined with projects under development, have a value of approximately $1bn. The additional capital will further strengthen Crescent’s balance sheet, the company added.

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