CHARLOTTE, NC - Crescent Resources, LLC completed a private offering of $350 million of senior secured notes due in 2017. In addition, the company closed on $50 million of a $100 million equity commitment from its existing principal equity holders, Anchorage Capital Master Offshore, Ltd. and MatlinPatterson Global Opportunities Partners III L.P., and entered into a new $50 million revolving credit facility.
The company will use the proceeds to make targeted investments, primarily in the residential and multifamily sectors, and to refinance existing debt.
“We have a mandate for growth, the financial stability and ability to support it, and an experienced and talented team to capitalize on new investments in our target markets,” said Todd Mansfield, president and CEO. “Positive population growth and an attractive cost of living in these markets are increasing demand for both rental and for sale housing, and Crescent is well-suited to meet that demand.”
“The completion of our offering and the new equity investment demonstrate the confidence institutional investors and our principal equity sponsors have in Crescent Resources, our market leadership and our growth strategy,” said Kevin Lambert, chief financial officer. “The additional capital from these transactions further positions the company for the acquisition of new land assets and for dynamic expansion now and well into the future.”
Crescent Resources currently has a strong base of existing assets which, when combined with projects under development, have a value of approximately $1 billion. The additional capital will further strengthen Crescent’s balance sheet.
Founded in 1969 and based in Charlotte, Crescent Resources is a diversified real estate development and operating company. The company conducts business through four divisions in growing markets in the Southeast and Texas and has a long history of developing high quality residential communities and commercial assets. Currently, Crescent has 19 master planned communities and seven multifamily communities with 2,200 units under development and an additional 2,900 multifamily units in predevelopment. Crescent owns more than 75,000 acres of land across its four divisions, including 1,400 acres land zoned for a variety of commercial uses.