Author Topic: DTLA - DTLA Holdings  (Read 18201 times)

thepupil

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Re: DTLA - DTLA Holdings
« Reply #60 on: September 28, 2020, 12:52:31 PM »
i think it speaks to the (current) strength of the financing market for office that a 78% occupied doing $26/foot rent can do a refi at $324 debt/foot at L+286 on the senior.

Looks like they got some new tenants though and were able to de-risk some of the existing.

A spokesperson for Brookfield said the firm secured financing for the tower after it recently completed a lease renewal with Pillsbury law firm “and secured new long term leases with Clune Construction and California Fair Plan.”


SugarRE

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Re: DTLA - DTLA Holdings
« Reply #61 on: October 09, 2020, 08:54:43 AM »
I'm more of an asset valuation person so some of the structuring nuances can get lost on me bu the below from the recent 10k was a bit scary. I didn't diligently check if it was in prior 10ks.  And I only took my favorite section.

Brookfield DTLA’s subsidiaries have issued, and may in the future issue, equity securities that are senior to the equity interests of such subsidiary that are owned, directly or indirectly, by the Company. The respective organizational documents of Brookfield DTLA and its subsidiaries generally do not restrict the issuance of debt or equity by any of Brookfield DTLA’s subsidiaries, and
any such issuance may adversely impact the amount of funds available to Brookfield DTLA for any purpose, including for dividends or other distributions to holders of its capital stock, including the
Series A preferred stock. As part of the transactions immediately following the consummation of the merger with MPG, subsidiaries of the Company issued equity interests that rank senior to the equity securities of such subsidiaries held indirectly by Brookfield DTLA, and as a result, effectively rank senior to the Series A preferred stock. Additionally, at the time of the merger with MPG,
DTLA Holdings made a commitment to contribute up to $260.0 million in cash or property to New OP, for which it will be entitled to receive a preferred return. As of December 31, 2019 and the
date of this report, $44.5 million is available to the Company under this commitment for future funding.

The Series B preferred interest in New OP held by DTLA Holdings is effectively senior to the interest in New OP held by Brookfield DTLA and has a priority on distributions senior to the equity securities of such subsidiaries held indirectly by Brookfield DTLA and, as a result, effectively rank senior to the Series A preferred stock. The Series B preferred interest in New OP may limit the amount of funds available to Brookfield DTLA for any purpose, including for dividends or other distributions to holders of its capital stock, including the Series A preferred stock.

Then in the cash flows and notes, it seems as they are using the Series B as a type of a revolver.