Trinity Place Holdings announced a strategic investment by a global institutional investment management firm through a $70 million multiple draw secured term loan facility, subject to increase to $95 million in certain circumstances with the consent of the lender.
The Company expects to use the net proceeds from the loan to invest in multi-family apartment buildings in the greater New York area and other properties that meet specified criteria, as well as in connection with certain property recapitalizations and for working capital and other general corporate purposes.
Matthew Messinger, President and CEO of TPHS, noted, “We are excited about this sizable investment commitment, which furthers our objective to continue to grow our residential platform and portfolio and to invest in other special opportunities in our targeted prime New York Metropolitan area neighborhoods.
“We believe this support enhances TPHS’ ability to nimbly capitalize on unique investment and relationship opportunities, allowing further value creation for our stakeholders.”
The loan bears interest in cash and in kind, and matures on December 19, 2024, subject to extension under certain circumstances. The loan was not drawn at closing.
In connection with the loan, the company issued the lender ten-year detachable warrants to purchase 7,179,000 shares of common stock with an exercise price of $6.50 per share.
Palladian Realty Capital LLC acted as financial advisor to the Company in connection with the investment transaction.
The company also announced that its board of directors has approved a stock repurchase program under which it is authorized to acquire up to $5.0 million of its common stock.
Repurchases under the stock repurchase program may be made through open market or privately negotiated transactions at times and on such terms and in such amounts as management deems appropriate, subject to market conditions, regulatory requirements and other factors.
The program does not obligate the company to repurchase any particular amount of common stock, and may be suspended or discontinued at any time without notice.
Shares repurchases under the program will be made using cash on hand and from the net proceeds from the loan and are expected to be held as treasury shares.
Trinity Place Holdings Inc. is a real estate holding, investment and asset management company.
Currently, the principal asset of TPHS is a property located at 77 Greenwich Street (aka 28-42 Trinity Place) in Lower Manhattan.
The Company also owns two apartment buildings in Brooklyn, including one through a joint venture, and a retail box in Paramus, New Jersey.
Certain of its current assets are the legacy of Syms Corp. and Filene’s Basement holdings as a result of those companies having emerged from Chapter 11 bankruptcy under a plan of reorganization in September 2012.