Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Karin Ford - Keybanc Capital Markets.
Karin Ford - Keybanc Capital Markets
My first question is on your line of credit, the extension for March 2009. Is that option to extend solely your option and is there any ability or terms that would allow the bank not to extend that option for you guys?
Randall H. Brown
The facility states that as long as we’re not in default at the time that we request the extension then it’s an automated extension. So as long as you’re not in default, then you can extend it.
Karin Ford - Keybanc Capital Markets
My second question is just related to the refinancing on the $285 million. Could you just talk about what your contingency plans are in case you don’t get the agency facility that you’ve got the term sheet on? What are your plans for asset sales, what stage you are in marketing and what type of cap rates you might be looking at?
Randall H. Brown
First of all, let me say that we are very, very confident in the place that we’re in right now with the agency that we referred to. We have been negotiating and have been working with both agencies for quite a while now and there’s still very much a demand today for student housing assets by the agencies. So we have a lot of comfort in thinking that we’re going to be able to have the commitment by the end of the year as an outline.
Should that not happen, as you mentioned we do have other alternatives. We do have assets that are unencumbered. Tom can speak to the cap rate question but I think there’s still a good viable market for student housing assets. There are other lenders that we’re aware of. There are balance sheet lenders that we have had conversations with [as is the life companies].
So there’s a number of opportunities to us should the agency not come through. But again we don’t know of any reason why they shouldn’t.
Karin Ford - Keybanc Capital Markets
Are you guys currently marketing any properties today?
Thomas Trubiana
We are not currently marketing any properties but indeed are evaluating the entire portfolio and as we wrap up our review of the 2009 budgets our intent would be coming to the market sometime in the fourth quarter with a group of properties for sale.
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