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POST PROPERTIES INC FILES (8-K) Disclosing Termination of a Material Definitive Agreement

May 5, 2014

Item 1.02. Termination of a Material Definitive Agreement.

On May 1, 2014, Post Addison Circle Limited Partnership, a wholly-owned indirect subsidiary (the "Borrower") of Post Apartment Homes, L.P. (the "Operating Partnership") prepaid the aggregate outstanding principal amount of $120.0 million on a multi-family fixed rate note (the "Note") with Federal Home Loan Mortgage Corporation, as lender. The Note was secured by a deed of trust on the Post Addison Circle™ community, located in the Dallas, TX metropolitan area. The Note would have matured on February 1, 2015 with an automatic extension until February 1, 2016 (absent an event of default) and required fixed interest-only payments at 4.88% until January 31, 2015 and interest payments at a variable interest rate during the extension period. The Note contained representations, financial and other affirmative and negative covenants, events of default and remedies typical for this type of facility. The Note and the deed of trust related thereto were each terminated in connection with the prepayment.

The Borrower also paid prepayment premiums of an aggregate of approximately $4.2 million in connection with the prepayment of the Note. As such, the Operating Partnership expects to record a loss on early extinguishment of debt of approximately $4.3 million in connection with the prepayment premiums paid and the write-off of unamortized loan costs in the second quarter of 2014. The Operating Partnership used cash on hand and borrowings on its unsecured revolving lines of credit to finance the prepayment of the Note and the payment of the related prepayment premium.


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Source: Edgar Glimpses

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