Portsmouth Square Completes Strategic Refinancing of Hilton San Francisco Financial District Hotel
Portsmouth Square (OTC: PRSI) has successfully completed the refinancing of its Hilton San Francisco Financial District Hotel through two key transactions:
1. Justice Operating Company secured a $67 million mortgage loan with PRIME Finance at SOFR plus 4.80%, including an interest rate cap limiting SOFR exposure to 4.50%.
2. Justice Mezzanine Company modified its existing mezzanine loan with CRED REIT Holdco for $36.3 million at a fixed 7.25% annual rate.
Both loans mature in two years with options for three one-year extensions, enhancing the company's financial flexibility and stability in managing its flagship hospitality asset.
Portsmouth Square (OTC: PRSI) ha completato con successo il rifinanziamento del suo Hilton San Francisco Financial District Hotel attraverso due operazioni chiave:
1. Justice Operating Company ha ottenuto un prestito ipotecario di 67 milioni di dollari con PRIME Finance a SOFR più 4,80%, incluso un tetto sui tassi d'interesse che limita l'esposizione a SOFR al 4,50%.
2. Justice Mezzanine Company ha modificato il suo prestito mezzanino esistente con CRED REIT Holdco per 36,3 milioni di dollari a un tasso fisso annuale del 7,25%.
Entrambi i prestiti scadono tra due anni con opzioni per tre estensioni di un anno, migliorando la flessibilità e la stabilità finanziaria dell'azienda nella gestione del suo asset alberghiero di punta.
Portsmouth Square (OTC: PRSI) ha completado con éxito el refinanciamiento de su Hilton San Francisco Financial District Hotel a través de dos transacciones clave:
1. Justice Operating Company aseguró un préstamo hipotecario de 67 millones de dólares con PRIME Finance a SOFR más 4.80%, incluyendo un límite de tasa de interés que restringe la exposición a SOFR al 4.50%.
2. Justice Mezzanine Company modificó su préstamo mezzanino existente con CRED REIT Holdco por 36.3 millones de dólares a una tasa fija anual del 7.25%.
Ambos préstamos vencen en dos años con opciones para tres extensiones de un año, mejorando la flexibilidad y estabilidad financiera de la empresa en la gestión de su activo hotelero insignia.
포츠머스 스퀘어 (OTC: PRSI)는 두 가지 주요 거래를 통해 힐튼 샌프란시스코 금융 지구 호텔의 재융자를 성공적으로 완료했습니다:
1. 저스티스 운영 회사는 PRIME Finance와 함께 6,700만 달러의 모기지 대출을 확보했으며, SOFR에 4.80%를 더한 금리로, SOFR 노출을 4.50%로 제한하는 금리 상한이 포함되어 있습니다.
2. 저스티스 메자닌 회사는 CRED REIT Holdco와의 기존 메자닌 대출을 3,630만 달러로 수정하였으며, 연 7.25%의 고정 금리가 적용됩니다.
두 대출 모두 2년 후 만기가 도래하며, 1년 연장 옵션이 3회 제공되어 회사의 재무 유연성과 안정성을 개선하고 있습니다.
Portsmouth Square (OTC: PRSI) a réussi à finaliser le refinancement de son Hilton San Francisco Financial District Hotel à travers deux transactions clés :
1. Justice Operating Company a obtenu un prêt hypothécaire de 67 millions de dollars auprès de PRIME Finance à SOFR plus 4,80%, incluant un plafond d'intérêt limitant l'exposition à SOFR à 4,50%.
2. Justice Mezzanine Company a modifié son prêt mezzanine existant avec CRED REIT Holdco pour 36,3 millions de dollars à un taux fixe annuel de 7,25%.
Les deux prêts arrivent à échéance dans deux ans avec des options pour trois prolongations d'un an, améliorant ainsi la flexibilité et la stabilité financière de l'entreprise dans la gestion de son actif hôtelier phare.
Portsmouth Square (OTC: PRSI) hat erfolgreich die Refinanzierung seines Hilton San Francisco Financial District Hotels durch zwei wichtige Transaktionen abgeschlossen:
1. Justice Operating Company sicherte sich ein Hypothekendarlehen über 67 Millionen Dollar bei PRIME Finance zu SOFR plus 4,80%, einschließlich einer Zinsobergrenze, die die SOFR-Exposition auf 4,50% begrenzt.
2. Justice Mezzanine Company änderte ihr bestehendes Mezzanine-Darlehen bei CRED REIT Holdco auf 36,3 Millionen Dollar zu einem festen Jahreszins von 7,25%.
Beide Darlehen haben eine Laufzeit von zwei Jahren mit Optionen für drei einjährige Verlängerungen, was die finanzielle Flexibilität und Stabilität des Unternehmens bei der Verwaltung seines Haupt-Hotelvermögens verbessert.
- Secured substantial $103.3 million total refinancing package
- Interest rate cap protection limiting SOFR exposure to 4.50%
- Flexible loan terms with 2-year maturity and three 1-year extension options
- Fixed rate of 7.25% on $36.3M mezzanine loan provides rate stability
- High interest rate spread of 4.80% over SOFR on primary mortgage
- Increased debt exposure through dual-loan structure
SAN FRANCISCO, CA, April 01, 2025 (GLOBE NEWSWIRE) -- Portsmouth Square, Inc. (OTC: PRSI) ("Portsmouth Square" or "the Company") today announced the successful refinancing of its flagship asset, the Hilton San Francisco Financial District Hotel. This strategic refinancing positions the Company for improved financial flexibility and stability in managing its premier hospitality asset.
The refinancing was executed through Justice Operating Company, LLC ("Justice"), a wholly owned subsidiary of Portsmouth Square. Justice secured a
In addition, Justice Mezzanine Company, LLC another subsidiary of Portsmouth Square, has modified its existing mezzanine loan with CRED REIT Holdco LLC, obtaining a principal amount of
"This refinancing is a significant step in our strategic financial management, ensuring favorable terms and financial stability," said David Gonzalez, President of Portsmouth Square. "Securing this agreement highlights our commitment to prudent financial stewardship and positions us well for continued growth and long-term value creation."
Further details of the refinancing transactions will be available in the Company’s forthcoming periodic report filings with the Securities and Exchange Commission (SEC).
ABOUT PORTSMOUTH SQUARE, INC.
Portsmouth Square, Inc. is a California corporation, incorporated in 1967. Portsmouth is a public company and is a consolidated subsidiary of The InterGroup Corporation (NASDAQ: INTG). Portsmouth's principal business is conducted through its ownership of the Hilton San Francisco Financial District, a 544-room hotel located at 750 Kearny Street, San Francisco, CA 94108, including a five-level underground parking garage.
Contact:
David Gonzalez, President
(310)889-2559
FAQ
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