Delavaco seeks 1.5-year maturity extension of 7˝% notes due June 30

By Wendy Van Sickle

Columbus, Ohio, June 8 – Delavaco Residential Properties Corp. has sent notices to all holders of its 7˝% senior secured notes due June 30, 2016, seeking a maturity date extension, the company said in a press release.

The company is seeking to push the maturity of the notes to Dec. 31, 2017.

Delavaco said it has been aggressively paying down the notes from the original $25 million principal amount issued in 2013 to the current balance of about $12.3 million.

The company has funded the note repayments, in part, by disposing of its South Florida single-family home portfolio on a “one-off” basis.

To repay the remaining note balance, the company said it has looked at a number of scenarios that involve the disposition of not only the remaining single-family homes in South Florida but also all of Atlanta, which the company anticipates it could achieve by the end of 2017.

Delavaco said the maturity date extension is critical to its repositioning and deleveraging plan. The manager of the company, Firm Capital Realty Partners Advisors Inc., and its affiliated or associated entities advised the company that unless all the noteholders agree to the extension, they will consider terminating their asset management agreement with the company, which may leave it at risk as a going concern, according to the release.

The company is asking noteholders to approve the extension by June 30.

If the extension is approved, the company expects the following to occur:

• Rebranding, including a corporate name change to Firm Capital American Realty Partners Corp. and new business focus;

• Reconstitution of a new senior management team and board of directors; and

• The proceeding of a proposed $10 million rights offering with the proceeds expected to be used for future investments of the company.

Delavaco Properties is a real estate investment firm based in Fort Lauderdale, Fla., and Toronto.

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