On March 14, 2008 the Company entered into a new three-year $40.0
million revolving loan facility (the "New Loan") with KeyBank National
Association (the "Lender"). Proceeds from the New Loan were used to:
(i) refinance the Company's Eclipse at Potomac Yard project which was
previously financed by Corus Bank and had a principal balance of
approximately $22.0 million, (ii) refinance the Company's Townes at
Station View project which was previously financed by Key Bank and
had a principal balance of approximately $2.8 million, (iii)
facilitate the Company's closing on the restructure of its Unsecured
Notes thereby securing a $15.0 million discount to the original
principal amount of the Unsecured Notes, (iv) pay costs associated
with closing the New Loan, and (v) provide the Company with additional
working capital. The New Loan has no quarterly financial covenants,
other then periodic minimum principal curtailment requirements
commencing in March 2009.
In a separate transaction, also on March 14, 2008, the Company
executed on its previously disclosed option to restructure its
Unsecured Notes. In connection therewith the Company made a $6.0
million principal payment to the Noteholder and entered into an
amended and restated indenture with the Noteholder with a new
principal balance of $9.0 million and a revised term of 5 years (the
"Restated Indenture"). As a result, the Company received a $15.0
million discount to the original principal amount due to the
Noteholder.
Details of both transactions will be discussed in more detail as
subsequent events in the Company's upcoming filing on Form 10-K for
fiscal year 2007, which the Company expects to file on March 24,
2008. The Company also announced that it had received its 2007
federal tax refund and that it had retired the previously announced
$4.0 million working capital loan to Stonehenge Funding, LC.
"We are very pleased to report these significant accomplishments,"
said Christopher Clemente, Chief Executive Officer. "While current
market conditions continue to present challenges, these
accomplishments help solidify our capital base, improve our balance
sheet, and provide operating liquidity."
The Company will hold an investor conference call on Tuesday, March
25, 2008 at 1:00 p.m. Eastern Time hosted by Christopher Clemente,
Chief Executive Officer and Bruce Labovitz, Chief Financial Officer.
To participate in the call by telephone, the domestic dial-in number
is 800-769-8320 and the international dial-in is 416-695-9719. There
is no access code required. Investors are advised to join at least
five minutes prior to the call to register. The call will also be
available via live webcast on the Comstock Homebuilding Companies'
website at http://www.comstockhomebuilding.com in the "Investor
Relations" section. The call will be archived for seven days: from
5:00 p.m. on March 25, 2008, until 11:59 p.m. on April 1, 2008.
Domestic callers can access the replay at 800-408-3053 and
international callers can access the replay at 416-695-5800. The
replay access code is 3253806.
About Comstock Homebuilding Companies, Inc.
Established in 1985, Comstock Homebuilding Companies, Inc. is a
publicly traded, diversified real estate development firm with a focus
on affordable priced for-sale residential products. Comstock builds
and markets single-family homes, townhouses, mid-rise condominiums,
high-rise condominiums, mixed-use urban communities and active adult
communities. The company currently markets its products under the
Comstock Homes brand in the Washington DC; Raleigh, North Carolina;
and Atlanta, Georgia metropolitan areas. Comstock Homebuilding
Companies, Inc. trades on NASDAQ under the symbol CHCI. For more
information on the Company or its projects please visit
www.comstockhomebuilding.com.
Cautionary Statement Regarding Forward-Looking Statements
This release contains "forward-looking" statements that are made
pursuant to the Safe Harbor provisions of the Private Securities
Litigation Reform Act of 1995. Statements that are predictive in
nature, that depend upon or refer to future events or conditions, or
that include words such as "may," "will," "expects," "projects,"
"anticipates," "estimates," "believes," "intends," "plans," "should,"
"seeks," and similar expressions, including statements related to
Comstock's expected future financial results and anticipated growth
in the Washington DC housing market, are forward-looking statements.
Forward-looking statements involve known and unknown risks and
uncertainties that may cause future results to differ materially from
those projected or contemplated in the forward-looking statements.
These risks and uncertainties include, but are not limited to,
economic, market and competitive conditions affecting Comstock and
its operations and products, risks and uncertainties relating to the
market for real estate generally and in the areas where Comstock has
projects, the availability and price of land suitable for
development, materials prices, labor costs, interest rates,
Comstock's ability to service its significant debt obligations,
fluctuations in operating results, anticipated growth strategies,
continuing relationships with affiliates, environmental factors,
government regulations, the impact of adverse weather conditions or
natural disasters and acts of war or terrorism. Additional
information concerning these and other important risks and
uncertainties can be found under the heading "Risk Factors" in the
Company's most recent form 10-K, as filed with the Securities and
Exchange Commission on March 16, 2007. Comstock specifically
disclaims any obligation to update or revise any forward-looking
statements, whether as a result of new information, future
developments or otherwise.
Contact:
Bruce Labovitz
Email Contact
703.230.1131
SOURCE: Comstock Homebuilding Companies, Inc.