Donahue Schriber Completes $1.2 Billion Balance Sheet Recapitalization

countryside marketplaceDonahue Schriber, the owner of Menifee's "Countryside Marketplace" shopping center, announced earlier today that it had successfully completed the final piece of a $1.2 billion balance sheet recapitalization.

The recapitalization occurred through several transactions. The final piece was a $365 million refinance with a bank syndicate led by Bank of America and also included Wells Fargo Bank, U.S. Bank, PNC Bank, Union Bank and City National Bank.

The loan refinances a portfolio of 31 of Donahue Schriber's assets, including Countryside Marketplace. The new financing has a term of five years with a built-in option for a two-year extension, a lower interest rate and eliminates many restrictive covenants.

In addition, the Company's major investors, the New York State Teachers' Retirement System and the J.P. Morgan Chase Bank Strategic Property Fund, converted their $188 million of preferred stock and accrued dividends into shares of common stock. They have also committed to provide the Company $100 million of additional common capital for future growth opportunities. Included in the recapitalization total is the $248,545,000 ten-property refinance with Allstate Life Insurance Company that closed May 31, 2011.

The recapitalization is described by Donahue Schriber Chairman and CEO Patrick S. Donahue as one of the most important events in the Company's 42-year history. "The Bank of America loan restructure is the last big piece of putting the Company's balance sheet in order, securing our position as a leader in the retail real estate industry. We could not have done any of this without the confidence and support of our Major Shareholders, NYSTRS and J.P. Morgan Strategic Fund. We're grateful to them, to Bank of America and to the other banks in the syndication that share our vision," stated Mr. Donahue.

Bank of America Market President and Region Executive Allen Staff Jr. said, "We're very pleased to continue our strong relationship with Donahue Schriber. They are a solid company with a bright future."

Bank of America and its predecessor banks have been the leading financial partner since the formation of Donahue Schriber's private REIT (Real Estate Investment Trust) in 1997.




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