Two banks have committed $55 million to a $125 million line for Capital Pacific Holdings led by Bank One. Fleet Securities chipped in $40 million while California Bank & Trust has committed $15 million. The bank meeting was held two weeks ago, according to a Bank One official. Three to five additional lenders are being sought. Up-front fees range from 20 to 40 basis points, depending on commitments, he said, declining to elaborate.
The loan will refinance the Newport Beach, Calif., home-developer's existing line of credit, according to the official. Pricing is LIBOR plus 21/4%. Bank One is also the lead arranger on one of the company's smaller lines of credit. Capital Pacific is an active developer in Texas, Arizona, Nevada and Colorado. Syndication is expected to close in July. Calls to company officials were not returned by press time.