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FINANCIAL NEWS
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The Management Trust completes debt recapitalization

The Tustin-based firm says the move allows it to realign its lender relationships and provides funding for expansion efforts.

By Caitlin AdamsPublished: January 31, 2011 02:41 PM

The Management Trust has completed a debt recapitalization that allows the Tustin-based company to “realign” its lender relationships while providing additional funds for continued expansion strategies.

The community association management company specializes in serving condo- and homeowner agencies throughout the nation. The Management Trust is the third largest of its kind in the U.S.

The recapitalization was approved by the company’s board of directors earlier this month. Through the process, The Management Trust refinanced its existing debt at more favorable terms. Additionally, the recapitalization provided an acquisition facility and fresh operating capital, and included an agreement outlining the company's two lenders’ future provisions for securing additional credit.

Under the terms of the deal, Comerica, The Management Trust’s new senior lender, provided $4.7 million, and Claritas Capital, the new mezzanine lender, provided $3.5 million. The agreements include $3 million for refinancing the company’s existing debt, divided evenly between both lenders.

William B. Sasser, president of The Management Trust, said the new agreements with Comerica and Claritas Capital will enable the firm to continue to grow.

“The Management Trust’s growth strategy involves the acquisition of well-established homeowner and condo-owner association management companies that are highly respected within their markets,” Sasser said. “Our new agreements with Comerica and Claritas Capital provide us with the access to the capital we need to dramatically increase The Management Trust’s market penetration in our current markets, as well as our expansion into new markets.”

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