Wachovia Securities is holding off on its efforts to syndicate a $350 million refinancing for Post Properties, given the chaos surrounding the real estate investment trust's management, according to LMW sister publication, Real Estate Finance & Investment. The bank, acting as lead arranger and administrative agent, had been fresh from a bank meeting when the proxy-fight at the Atlanta-based REIT began, according to David Blackman, director and manager of real estate syndications at the bank. "The proxy fight came up unexpectedly and since it is not a pending maturity, we would get a much better execution if we waited," he said.
The decision was based on conversations with Post president and CEO David Stockert and lenders, Blackman added. "I'm not surprised, with all the corporate governance issues," one syndicate player commented. "If there is instability in the management ranks, people are going to ask a lot of questions." Participants in the current bank group include Wells Fargo Bank, AmSouth Bank, SunTrust Bank, and Commerce Bank. The three-year revolving credit facility has been used sparingly by the company but remains an important capital commitment, Blackman said. Although the line does not mature until 2004, management had indicated a desire to refinance it this year. Pricing is tied to the credit rating of its senior unsecured debt.