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AEROTERMNAT REALTERM EVERSTONECASE STUDIES
Challenge
- Near-term debt maturity of 1.35 mm square feet of air-cargo facilities comprising 14 buildings located in 5 airports and 4 cities.
- Frozen commercial mortgage markets.
- Specialized air-cargo assets.
- Multiple jurisdictions.
- Various stages of stabilization.
Solution
- In July 2008, Aeroterm began seeking a mortgage provider.
- Likely participants were short listed based on previous relationships and familiarity with the asset class.
- Negotiated final deal with British Columbia Investment Management Corporation (BCIMC) by leveraging the Company’s dominant market position, strong operational capabilities and BCIMC’s prior experience in the air-cargo space.
Value Creation
- $75 mm mortgage with BCIMC replaced a collection of smaller loans with numerous institutional lenders.
- Negotiated 7-year, fixed rate mortgage for the company’s Canadian portfolio.
- The refinancing reduced the overall cost of funds and enhanced the portfolio’s long-term stability and near-term marketability.
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