Replies to post #133 on W2007 Grace Acquisition I, Inc. (fka WGCBP)

[Hank Moody]

Maybe EI can share his view on this?

What will this mean for us?

W2007 GRACE ACQUISITION I, INC.
Announces Refinancing and Warrant Exercise

IRVING, TX — April 14, 2014 — W2007 Grace Acquisition I, Inc. today announced the refinancing of its existing $955 million indebtedness with a new $976 million financing. The new financing was lead by German American Capital Corporation (the “GACC Financing”), with Goldman Sachs Mortgage Company acquiring a minority participation interest. The Company expects the senior loan under the GACC Financing to be securitized within the next ninety days. The GACC Financing bears interest at LIBOR plus 3.3%, has an initial term of two years and has three one-year extension options. It is secured by mortgages on 106 hotels owned by subsidiaries of W2007 Equity Inns Senior Mezz, LLC (“Senior Mezz, LLC”). Simultaneously with the closing of the GACC Financing, WNT Holdings, LLC, an affiliate of the Whitehall Funds, acquired from a subsidiary of the Company pursuant to the exercise of a warrant agreement a 97% interest in Senior Mezz, LLC. The Company retained a 3% interest in Senior Mezz, LLC.

[h_man_investor]

After the deconsolidation of the 106 "purchase option hotels" which was exercised by WNT Holdings after the refi I get very little, if any, equity in Grace I. This includes consideration for the accrued dividend and par for the preferreds which in total is approximately $225mm.

My point is that the preferreds DO NOT stand in the way of Whitehall monetizing its investment because WNT Holdings basically already did that.