Bank of America is seeking commitments for a $100 million add-on to an existing $200 million revolving credit for San Francisco, based-Hearthstone MSII Homebuilding Investors, a private finance real estate company that invests and manages institutional capital in residential developments. The fund is seeking to invest in home-building projects and is adding the $100 million of new money to the existing credit taken out in January of last year, noted a banker familiar with the situation.
Pricing is similar to the last deal at LIBOR plus 2%, said the banker. However, a grid has been added so that if more than $200 million of the revolver is drawn down, pricing will increase from 2% to 21/2 %, she added, declining to comment on commitment fees. The maturity has been extended a year to 2004 and the covenants are unchanged and standard. It could not be determined what banks have so far committed to the deal, which closes at the end of the month. Mark Porath, cfo of Hearthstone, referred questions to officials at B of A, who declined comment.