/C O R R E C T I O N -- Regency Affiliates, Inc./
Regency Affiliates, Inc. (OTC Pink: RAFI) has announced the buyout of its self-storage minority partner, SSCP Management This move comes after their 2016 joint venture to purchase five self-storage facilities in Harrisburg, Pennsylvania for $35MM. The acquisition was initially financed with a $25.3MM non-recourse loan at 5% interest, maturing in 2026.
To facilitate the buyout, a Regency subsidiary borrowed $5MM from an unrelated third party. $3MM of this was used to acquire SSCP's 3% membership interest, with the remainder available for general corporate purposes. The new loan has a 10% interest rate, payable monthly, and matures in May 2026.
As a result of this transaction, Regency now owns 100% of the equity interests in the five self-storage facilities. CEO Laurence Levy expressed excitement about the acquisition, citing favorable transaction terms and the benefits of additional liquidity and flexibility from the remaining loan proceeds.
Regency Affiliates, Inc. (OTC Pink: RAFI) ha annunciato l'acquisizione della sua partecipazione minoritaria nel self-storage, SSCP Management. Questa mossa arriva dopo la loro joint venture del 2016 per acquistare cinque strutture di self-storage a Harrisburg, Pennsylvania, per 35 milioni di dollari. L'acquisizione è stata inizialmente finanziata con un prestito non ricorsivo di 25,3 milioni di dollari al 5% di interesse, con scadenza nel 2026.
Per facilitare l'acquisizione, una sussidiaria di Regency ha preso in prestito 5 milioni di dollari da una terza parte non correlata. 3 milioni di dollari sono stati utilizzati per acquisire il 3% della partecipazione di SSCP, con il resto disponibile per scopi aziendali generali. Il nuovo prestito ha un tasso d'interesse del 10%, pagabile mensilmente, e scade a maggio 2026.
Come risultato di questa transazione, Regency ora possiede il 100% degli interessi patrimoniali nelle cinque strutture di self-storage. Il CEO Laurence Levy ha espresso entusiasmo per l'acquisizione, citando condizioni di transazione favorevoli e i vantaggi di una maggiore liquidità e flessibilità derivanti dai restanti proventi del prestito.
Regency Affiliates, Inc. (OTC Pink: RAFI) ha anunciado la compra de su socio minoritario en self-storage, SSCP Management. Este movimiento se produce tras su joint venture de 2016 para adquirir cinco instalaciones de self-storage en Harrisburg, Pennsylvania, por 35MM de dólares. La adquisición fue financiada inicialmente con un préstamo no recurso de 25.3MM de dólares al 5% de interés, que vence en 2026.
Para facilitar la compra, una subsidiaria de Regency tomó prestados 5MM de dólares de un tercero no relacionado. 3MM de esto se utilizaron para adquirir el 3% de la participación de SSCP, mientras que el resto está disponible para fines corporativos generales. El nuevo préstamo tiene una tasa de interés del 10%, pagadera mensualmente, y vence en mayo de 2026.
Como resultado de esta transacción, Regency ahora posee el 100% de los intereses de capital en las cinco instalaciones de self-storage. El CEO Laurence Levy expresó su entusiasmo por la adquisición, citando condiciones de transacción favorables y los beneficios de una mayor liquidez y flexibilidad por los fondos restantes del préstamo.
Regency Affiliates, Inc. (OTC Pink: RAFI)는 자사 셀프 스토리지의 소수 파트너인 SSCP Management를 인수했다고 발표했습니다. 이 조치는 2016년 펜실베이니아의 해리스버그에 있는 다섯 개 셀프 스토리지 시설을 3500만 달러에 구매하기 위한 공동 투자를 한 이후 이루어졌습니다. 인수는 5% 이자를 가진 2530만 달러의 비상환 대출로 초기 자금을 조달하였고, 이 대출은 2026년에 만료됩니다.
인수를 용이하게 하기 위해, Regency의 자회사는 관련 없는 제3자로부터 500만 달러를 차입하였습니다. 이 중 300만 달러는 SSCP의 3% 지분을 인수하는 데 사용되었으며, 나머지는 일반 회사 용도로 사용할 수 있습니다. 새로운 대출은 월별로 지급되는 10%의 이자율을 가지고 있으며, 2026년 5월에 만료됩니다.
이 거래의 결과로, Regency는 이제 다섯 개 셀프 스토리지 시설에 대한 100%의 지분을 소유하게 되었습니다. CEO 로렌스 레비는 인수에 대해 흥분을 표하며, 유리한 거래 조건과 잔여 대출 수익으로 인한 추가 유동성 및 유연성의 이점을 언급했습니다.
Regency Affiliates, Inc. (OTC Pink: RAFI) a annoncé le rachat de son partenaire minoritaire en self-storage, SSCP Management. Ce mouvement fait suite à leur coentreprise de 2016 pour acheter cinq installations de self-storage à Harrisburg, Pennsylvanie, pour 35 millions de dollars. L'acquisition a été initialement financée par un prêt non recouvrable de 25,3 millions de dollars à un taux d'intérêt de 5%, arrivant à échéance en 2026.
Pour faciliter le rachat, une filiale de Regency a emprunté 5 millions de dollars à un tiers non lié. 3 millions de dollars ont été utilisés pour acquérir les 3% de participation de SSCP, le reste étant disponible pour des fins corporatives générales. Le nouveau prêt a un taux d'intérêt de 10%, payable mensuellement, et arrive à échéance en mai 2026.
En conséquence de cette transaction, Regency possède désormais 100% des intérêts en capital dans les cinq installations de self-storage. Le PDG Laurence Levy a exprimé son enthousiasme pour l'acquisition, citant des conditions de transaction favorables et les avantages d'une liquidité et d'une flexibilité supplémentaires grâce aux fonds restants du prêt.
Regency Affiliates, Inc. (OTC Pink: RAFI) hat die Übernahme seines Minderheitsanteils am Self-Storage-Partner SSCP Management bekannt gegeben. Dieser Schritt folgt auf ihr Joint Venture von 2016, um fünf Self-Storage-Anlagen in Harrisburg, Pennsylvania, für 35 Millionen US-Dollar zu erwerben. Die Akquisition wurde zunächst mit einem nicht rückzahlbaren Darlehen über 25,3 Millionen US-Dollar zu einem Zinssatz von 5% finanziert, das im Jahr 2026 fällig wird.
Um die Übernahme zu erleichtern, nahm eine Tochtergesellschaft von Regency 5 Millionen US-Dollar von einer nicht verbundenen dritten Partei auf. 3 Millionen Dollar davon wurden verwendet, um den 3%-Anteil von SSCP zu erwerben, während der Rest für allgemeine Unternehmenszwecke verwendet werden kann. Das neue Darlehen hat einen Zinssatz von 10%, der monatlich zahlbar ist, und läuft im Mai 2026 aus.
Als Ergebnis dieser Transaktion besitzt Regency nun 100% der Eigenkapitalanteile an den fünf Self-Storage-Anlagen. CEO Laurence Levy äußerte sich begeistert über die Akquisition und nannte die günstigen Transaktionsbedingungen sowie die Vorteile zusätzlicher Liquidität und Flexibilität durch die verbleibenden Darlehensmittel.
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In the news release, REGENCY AFFILIATES ANNOUNCES BUYOUT OF SELF-STORAGE MINORITY PARTNER, issued 09-Oct-2024 by Regency Affiliates, Inc. over PR Newswire, we are advised by the company that the following sentence was added to the first paragraph: "Regency Affiliates, Inc. (OTC Pink: RAFI) ("Regency") today announces buyout of self-storage minority partner." The complete, corrected release follows:
REGENCY AFFILIATES ANNOUNCES BUYOUT OF SELF-STORAGE MINORITY PARTNER
On October 8, 2024, a subsidiary of Regency borrowed
Laurence Levy, CEO and CFO of Regency commented "We are excited about this acquisition for Regency and we believe the transaction terms are favorable. Regency will also benefit from the additional liquidity and flexibility of the loan proceeds remaining post-acquisition."
About Regency Affiliates
Regency Affiliates, Inc. invests in businesses that generate attractive, predictable and sustainable returns on capital. We are currently invested in two assets:
- A portfolio of five stand-alone self-storage facilities in the
Harrisburg, Pennsylvania vicinity comprising approximately 337,000 square feet of net rentable space in excess of 2,500 climate and non-climate-controlled storage units; and - A
50% limited partnership interest in the Security West Complex located on 34.3 acres in Woodlawn,Maryland . The facility was occupied under a lease with the United States General Services Administration until November 1, 2023, since which the facility has been vacant.
Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements are statements that are predictive in nature or depend on or refer to future events and can be identified by the words "may," "might," "will," "should," "anticipate," "believe," "expect," "intend," "estimate," "hope," or similar expressions. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy or are otherwise beyond our control and some of which might not even be anticipated. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Future events and actual results affecting our strategic plan as well as our financial position, results of operations and cash flows, could differ materially from those described in or contemplated by the forward-looking statements. Important factors that contribute to such risks include, but are not limited to, a default or catastrophe involving the properties in which we invest, the extent to which we are able to raise additional capital, and competition for additional investment opportunities. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. For a more detailed description of these uncertainties and other factors, please see our website at www.regencyaffiliates.com.
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SOURCE Regency Affiliates, Inc.
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