Sun Communities Inc. Enters into Loan Agreement with Bank of America N.A.; Appoints Brian M. Hermelin as Director of the company and Board Member of Audit Committee and Executive Committee
January 07, 2014 at 08:10 pm
Share
On December 31, 2013, nine subsidiaries of Sun Communities operating limited partnership (scolp), the primary operating subsidiary of Sun Communities Inc., entered into a loan agreement with Bank of America N.A. (boa) under which BOA made a $72.4 million term loan (the pool a loan) and nine other subsidiaries of Sun Communities operating limited partnership entered into a loan agreement with BOA under which BOA made a $69.1 million term loan. The pool a loan and the pool b loan accrue interest at the rate of 4.89% per year and 4.90% per year, respectively. The borrowers under each loan are required to make monthly interest-only payments until February 1, 2017, and from that date until the maturity date monthly principal and interest payments calculated based on a 30-year amortization period. each loan matures on January 1, 2024. The pool a loan is secured by mortgages, assignment of leases and rents and a deed of trust on eight manufactured home communities and two recreational vehicle communities and the pool b loan is secured by mortgages and assignment of leases and rents on eight manufactured home communities and one recreational vehicle community. Sun Communities operating limited partnership has guaranteed each loan. The company used the proceeds of the loans and $34.4 million in cash to repay in full 11 loans previously made by boa to subsidiaries of the company.
Effective January 1, 2014, Sun Communities Inc. increased the number of members of the board from seven (7) to eight (8) as permitted under the company's bylaws and appointed Brian M. Hermelin to serve as a director of the company until the annual meeting of the company's stockholders to be held in 2014 and until his successor is elected and qualifies. in addition, Mr. Hermelin has been appointed to the audit committee and executive committee of the board, and has been designated as an audit committee financial expert. Mr. Hermelin is the co-founder and managing partner since 2007 of Rockbridge Growth Equity LLC. Mr. Hermelin is also a co-founder and general partner of Detroit Venture Partners, LLC.
Sun Communities, Inc. is a fully integrated real estate investment trust (REIT). The Company owns manufactures housing (MH) and recreational vehicle (RV) communities and marinas in the United States, the United Kingdom, and Canada. The Company operates through four segments: MH communities, RV communities, Marinas, and communities in the United Kingdom (UK). The MH communities segment offers affordable housing to individuals and families, while also providing certain amenities. The RV communities offers affordable vacation opportunities to individuals and families with various amenities. The Marinas offers wet slip and dry storage space leases, end-to-end services, fuel sales and other amenities. The UK segment owns, operates, develops, or has an interest in, a portfolio of communities, referred to as holiday parks, and is in the business of acquiring, operating, and developing communities in the United Kingdom. The Company owns and operates portfolio of 665 developed properties.
Sun Communities Inc. Enters into Loan Agreement with Bank of America N.A.; Appoints Brian M. Hermelin as Director of the company and Board Member of Audit Committee and Executive Committee
SUN COMMUNITIES, INC. 
