Commitment Letter for $195 Million Loan from Capmark Finance Inc. to PCAA SP, LLC and Affiliates
Summary
Capmark Finance Inc. has issued a commitment letter to PCAA SP, LLC and its affiliates, agreeing to provide a loan of up to $195 million. The loan is secured by various properties and is subject to the satisfaction of specific conditions outlined in the agreement, including the execution of final loan documents and delivery of required materials by set deadlines. The agreement becomes binding only if signed by the borrower by August 8, 2006, and all conditions must be met before the loan is funded.
EX-10.7 6 y23627exv10w7.txt EX-10.7: COMMITMENT LETTER EXHIBIT 10.7 Capmark Finance Inc. 48 Wall Street, 17th Floor New York, New York 10005 August 8, 2006 VIA FACSIMILE PCAA SP, LLC Parking Company of America Airports, LLC Parking Company of America Airports Phoenix, LLC PCA Airports, Ltd. Attn: Mr. Nicholas Gole c/o Macquarie Securities USA, Inc. 125 W. 55th Street New York, NY 10019 Re: Commitment for a loan in the maximum amount of up to $195,000,000.00 (the "Loan") from Capmark Finance Inc. ("CFI") to PCAA SP, LLC, a Delaware limited liability company, Parking Company of America Airports, LLC, a Delaware limited liability company, Parking Company of America Airports Phoenix, LLC, a Delaware limited liability company, and PCA Airports, Ltd., a Texas limited partnership (collectively, "Borrower") secured by Property located in the locations identified on Exhibit B hereto (collectively with all other collateral for the Loan, the "Property") Ladies and Gentlemen, This letter (this "Commitment Letter") will constitute the commitment of CFI to make the Loan to Borrower, subject to (i) satisfaction of the conditions listed on Exhibit A attached and made a part hereof, and (ii) the terms and conditions of the Application and any amendment to the Application attached to this Commitment Letter (the "Application"), as such terms and conditions have been incorporated, with agreed upon modification, into the draft loan documents previously being circulated by CFI or its counsel and/or being circulated contemporaneously with this Commitment Letter, as such loan documents may be amended as agreed to by the parties (the "Loan Documents"). If there is any inconsistency between the Application and the draft Loan Documents or between this Commitment Letter and such Loan Documents, the Loan Documents shall govern, and in the case of any inconsistency between such draft Loan Documents and the final Loan Documents executed at the closing of the Loan, the final, executed Loan Documents shall govern. Upon the closing of the Loan, such final, executed Loan Documents shall August __, 2006 Page 2 constitute the complete and integrated agreement of Borrower, CFI, any guarantor and environmental indemnitor or any other signatory thereto with respect to the Loan and the Property. Notwithstanding anything contained herein to the contrary, CFI shall have no obligation to make the Loan or any portion thereof, unless and until all of the conditions set forth on Exhibit A attached hereto have been fully satisfied or waived as determined by CFI in its sole and absolute discretion. The conditions and requirements set forth on Exhibit A may expand or otherwise supplement the conditions and requirements set forth in the Application. The absence of any conditions, requirements or other provisions included in the Application from those set forth in Exhibit A does not diminish, reduce or otherwise represent a waiver of any such condition, requirement or provision included in the Application, provided, however, that CFI expressly waives any provisions in the Application which indicate that (i) the Loan is subject to Committee Approval or other underwriting or credit approvals; and (ii) the Application is not a commitment to lend. Please sign this Commitment Letter in the space provided below evidencing your agreement to the terms hereof. This Commitment Letter shall only be binding upon CFI if an original counterpart hereof executed by Borrower is received on or before 5:00 P.M. on August 8, 2006. Sincerely, CAPMARK FINANCE INC. By: /s/ Sal Tarsia ----------------------- Name: Sal Tarsia Title: SVP August __, 2006 Page 3 ACCEPTED AND AGREED: BORROWER: PCAA SP, LLC, a Delaware limited liability company By: PCAA Parent LLC, a Delaware limited liability company, its sole member By: Parking Company of America Airports Holdings, LLC, a Delaware limited liability company, its Managing Member By: Macquarie Americas Parking Corporation, a Delaware corporation, its Managing Member By: /s/ Peter Stokes --------------------- Name: Peter Stokes Title: Vice President PARKING COMPANY OF AMERICA AIRPORTS, LLC, a Delaware limited liability company By: PCAA Parent, LLC, a Delaware limited liability company, its sole member By: Parking Company of America Airports Holdings, LLC, a Delaware limited liability company, its Managing Member By: Macquarie Americas Parking Corporation, a Delaware corporation, its Managing Member By: /s/ Peter Stokes --------------------- Name: Peter Stokes Title: Vice President PCA AIRPORTS, LTD., a Texas limited partnership By: PCAA GP, LLC, a Delaware limited liability company, its general partner August __, 2006 Page 4 By: PCAA Parent, LLC, a Delaware limited liability company, its sole member By: Parking Company of America Airports Holdings, LLC, a Delaware limited liability company, its Managing Member By: Macquarie Americas Parking Corporation, a Delaware corporation, its Managing Member By: /s/ Peter Stokes ---------------------- Name: Peter Stokes Title: Vice President PARKING COMPANY OF AMERICA AIRPORTS PHOENIX, LLC, a Delaware limited liability company By: PCAA Parent, LLC, a Delaware limited liability company, its sole member By: Parking Company of America Airports Holdings, LLC, a Delaware limited liability company, its Managing Member By: Macquarie Americas Parking Corporation, a Delaware corporation, its Managing Member By: /s/ Peter Stokes ---------------------- Name: Peter Stokes Title: Vice President EXHIBIT A 1. The execution and delivery of the documents and instruments substantially identified on the closing checklist previously circulated by Lender's counsel including, without limitation, the Loan Documents, in each case satisfactory to Lender. All Loan Documents shall be executed (to the extent required by Lender) by the party or parties thereto and delivered to Lender and its counsel by a date (the "Delivery Date"), that will allow sufficient time for review to allow funding by August 31, 2006. Notwithstanding, and in addition to the foregoing, (a) those Loan Documents must be executed by all parties thereto and delivered to Lender's counsel on or before the Delivery Date, and (b) duplicate originals of the Loan Documents (and any other documentation) to be recorded must be fully executed (and acknowledged), approved by Lender's counsel and (except for any Financing Statements) delivered into escrow with the title insurance company on or before the Delivery Date. All Loan Documents and any and all other documentation shall be in form, scope and substance reasonably satisfactory to Lender and to Lender's counsel. 2. Lender shall have received and approved the following: (i) all documents in connection with the contemplated interest rate Swap or interest rate Cap Agreement (including, but not limited to, any opinions and a corporate guarantee from PCAA Parent, LLC sufficient to obtain the required Swap or Cap agreement); (ii) a letter of credit in the amount of $380,510.00 if Borrower elects to provide a letter of credit in connection with the replacement reserve; (iii) executed ground lease estoppels in form and substance satisfactory to Lender with respect to certain of the Properties, as agreed to by Lender, (iv) all organizational documents for Borrower and PCAA Parent, LLC, satisfactory to Lender as required in the Loan Documents, (v) surveys of the Property satisfactory to Lender for the portions of the Property subject to prior loans from Lender and the portion of the Property located at 146-246 Haynes, Newark, New Jersey; (vi) title pro formas for the Property satisfactory to Lender for the portions of the Property subject to prior loans from Lender and the portion of the Property located at 146-246 Haynes, Newark, New Jersey; (vii) environmental site assessments for the Property satisfactory to Lender, and (viii) zoning reports for the Property satisfactory to Lender. 3. Except as approved in writing by Lender: a. since the date of the last inspection of the collateral by Lender, no portion of the collateral shall have been materially damaged and not repaired to Lender's satisfaction, or shall have been taken in condemnation or other similar proceedings, or any such proceedings shall be pending; b. since the date of the last inspection of the collateral by Lender, no material change in the structure or physical condition of any portion of the Property has occurred; c. neither Borrower, any guarantor, any indemnitor or any parent company thereto, shall be the subject of any bankruptcy, reorganization or insolvency proceeding; d. no default shall have occurred and be continuing in the performance of any obligation of Borrower, any guarantor, any indemnitor or any parent company thereto in the instruments evidencing, securing or guaranteeing any other loan; e. except as disclosed in the environmental reports required to be delivered in connection with the Loan, no material amounts of asbestos, toxic waste, oil or petroleum spillage or other Hazardous Substances (as defined in the Loan Documents) or other material condition shall exist on the Property; f. the income and expenses of the collateral, and any other features of the transaction contemplated hereby, shall be materially as represented in any documents delivered to, or communications with, Lender in order to induce Lender to make the Loan; g. a material adverse change shall not have occurred with respect to the business operations, properties or financial condition of, Borrower, or any guarantor or indemnitor; h. (a) no other change in facts, events, conditions or circumstances shall occur which may reasonably be expected to cause the Loan to become delinquent or to materially and adversely affect the Loan or collateral or (b) no material adverse change in conditions in the financial, banking or debt capital markets shall occur that could reasonably be expected to materially adversely impair the funding or syndication of the Credit Facilities; and i. all of the information provided by Borrower, any guarantor, any indemnitor or any parent company thereof, or any officers or principals of any of the foregoing, in connection with Borrower's application for the Loan, including but not limited to questionnaires completed by any of the foregoing persons or entities, was materially true and correct on the dates provided and did not omit any material information necessary to render complete and accurate the information provided, and such information will be materially accurate and complete on the closing date, except as Borrower has otherwise disclosed in writing to, and has been approved in writing by, Lender. 4. The loan to value ratio of the property shall not exceed sixty-five percent (65%) at stabilization, as determined by Lender. 5. All fees required by this Commitment Letter or the Application shall have been paid in full. 6. Any and all amounts required to be paid by Borrower on or before the closing date in accordance with the Application or the Loan Documents (including, without limitation, amounts specified by Lender as initial deposits for the escrow and reserve accounts required to be maintained under the Loan Documents (provided, however, Lender shall provide Borrower with a credit at closing for all sums held in escrow and/or reserve accounts under the loans being refinanced by the Loan) and all fees and costs incurred by Lender in connection with the closing, including title insurance premiums and reasonable attorneys' fees) shall have been paid to Lender's designated escrow agent by wire transfer of immediately available funds no later than 12:00 noon New York City time on the closing date. 7. All representations and warranties contained in the Loan Documents shall be true and correct as of the closing date. 8. Without limiting the provisions of 2 above, Borrower shall have delivered prior to closing (i) the original, or a copy certified by the insurance agent, of the policy(ies) of insurance; or (ii) the insurance binder (Accord Form 25S provided by the insurance carrier); or (iii) a certificate of insurance (Accord Form 27 provided by the insurance agent), or (iv) an original letter from the insurance carrier on the primary layer, signed by an officer of such carrier, attaching the form of insurance policy pursuant to which coverage is being provided, and, if applicable, an original letter from each insurance carrier on the excess layers, signed by an officer of such carrier(s) agreeing that it is bound to the form of insurance policy delivered by the primary carrier (i.e., agreeing to "follow form" to the primary carrier). The letter must set forth the date by which the policy will be delivered to the Lender, which must not be more than sixty (60) days following closing. All mortgagee/loss payee/additional insured endorsements must be attached to the letter. EXHIBIT B 1. 3802 Washington Road Atlanta, GA 2. 4099 Genesee Street Buffalo, NY 14225 3. 1399 Stelzer Road Columbus, OH 43219 4. 5100 W. John carpenter Freeway Dallas, TX 5. 56th & Himalaya Denver, CO 6. 18, 24-32, 50, 53, and 110 Ella Grasso Hartford, CT 7. 159 Old County Road Hartford, CT 8. 20 Ella Grasso Hartford, CT 9. 7601 Airport Boulevard Houston, TX 77061 10. 130-24 S. Conduit Jamaica, NY 11. 149-05 131st Street Jamaica, NY 12. 129th & 52nd Street Jamaica, NY 13. 90-10 23rd Ave. Queens, NY 14. 25-85 87th Street Queens, NY 15. 77-15 19th Street Queens, NY 16. 2731 Airways Road Memphis, TN 17. 2303 Democrat Road Memphis, TN 18. 498-512 Carnegie Newark, NJ 19. 175-179 Haynes Newark, NJ 20. 157-173 Haynes Newark, NJ 21. 484-496 Carnegie Newark, NJ 22. 136-160 Carnegie Newark, NJ 23. 47-75 Bessemer Newark, NJ 24. 472-482 Carnegie Newark, NJ 25. 176-192 McClellan Newark, NJ 26. 212-226 McClellan Newark, NJ 27. Rt. 1 & 9 Newark, NJ 28. 146 Haynes Newark, NJ 29. 150 Hegenberger Road Oakland, CA 30. 106-110 Hegenberger Road Oakland, CA 31. 145 98th Avenue Oakland, CA 32. 195 98th Avenue Oakland CA 33. 9655, 9725, 9790, 9791 Empire Oakland, CA 34. 3700 N. Mannheim Chicago, IL 35. 3901 Meridian Oklahoma City, OK 36. 7060 Essington Avenue Philadelphia, PA 19153 37. Mingo Avenue (Sunoco Lease) Philadelphia, PA 19153 38. 7750 Essington Avenue (lease expires 10/31/2006) Philadelphia, PA 19153 39. 3622 E. Washington Blvd. Phoenix, AZ 40. 4040 East Van Buren Phoenix, AZ 41. 701 Flaughtery Rd. Findlay Township, PA 42. Rt. 60 & Flaughtery Rd. Findlay Township, PA 43. 160-196 Produce Avenue (Hanna) San Francisco, CA 44. 160 Produce Avenue (Arata) San Francisco, CA 45. 131 Terminal Ct (GGPT) San Francisco, CA 46. San Mateo & Colma Creek (City of South San Francisco) San Francisco, CA 47. 160 & 190 Produce Avenue (Fee) San Francisco, CA 48. 4607 Airflight Drive St. Louis, MO 63134 - -------------------------------------------------------------------------------- Capmark Finance, Inc. William P. Collopy 230 Half Mile Rd. Senior Vice President Red Bank, NJ 07701 Tel. (732) 758-0004 Fax ###-###-#### [CAPMARK LOGO] June 14, 2006 Mr. Greg Andrews Chief Executive Officer PCAA Parent, LLC 8255 Firestone Blvd., Suite 502 Downey, CA 90241 Re: AviStar/PCAA/SunPark Off Airport Parking Portfolio (the "Property") - ----------------------------------------------------------------------- Dear Mr. Andrews: Capmark Finance, Inc. ("Lender") is pleased to consider your request for financing (the "Loan") secured by the Property and Other Collateral, all as more particularly described below, on the general terms and conditions outlined below:
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This letter is not a commitment to lend, either expressed or implied, and does not impose any obligation on Lender to issue a Commitment Letter or to make the Loan, or on the Borrower or any other entity in the Macquarie Group in any respect. The terms and conditions outlined above are not all inclusive, but merely reflect the parties' discussions to date and are subject to change. The contents hereof are confidential and are intended for use exclusively by the parties, their advisors and legal counsel in connection with the Loan from Lender and may not be disclosed to any third party by Borrower or its representatives. To commence processing of your requested financing, please sign and return the enclosed counterpart together with a check in the amount of $195,000 representing a $ 45,000 Underwriting Fee, and a $150,000 Loan Expense Deposit. This letter shall become null and void unless a counterpart of this letter and your check is received by 5:00 PM Eastern time on June 15, 2006. It may be sent via facsimile ###-###-####, provided the original and the required check are received the next business day. IMPORTANT INFORMATION ABOUT PROCEDURES FOR OBTAINING A LOAN: TO HELP THE GOVERNMENT FIGHT THE FUNDING OF TERRORISM AND MONEY LAUNDERING ACTIVITIES, FEDERAL LAW REQUIRES ALL FINANCIAL INSTITUTIONS TO OBTAIN, VERIFY AND RECORD INFORMATION THAT IDENTIFIES EACH PERSON WHO OPENS AN ACCOUNT. TO COMPLY WITH THIS FEDERAL REQUIREMENT, LENDER OR LENDER BANK WILL ASK YOU FOR THE BORROWER'S NAME, PRINCIPAL PLACE OF BUSINESS OR OTHER PHYSICAL LOCATIONS, TAX IDENTIFICATION NUMBER, DOCUMENTS SHOWING THE EXISTENCE OF THE BORROWER, AND OTHER INFORMATION THAT WILL ALLOW THE LENDER TO IDENTIFY YOU. TO HELP THE GOVERNMENT FIGHT THE FUNDING OF TERRORISM AND MONEY LAUNDERING ACTIVITIES, FEDERAL LAW REQUIRES ALL FINANCIAL INSTITUTIONS TO OBTAIN, VERIFY AND RECORD INFORMATION THAT IDENTIFIES EACH PERSON WHO OPENS AN ACCOUNT ITS CUSTOMERS. TO COMPLY WITH THIS FEDERAL REQUIREMENT, LENDER OR LENDER BANK WILL ASK YOU FOR THE BORROWER'S NAME, PRINCIPAL PLACE OF BUSINESS OR OTHER PHYSICAL LOCATIONS, TAX IDENTIFICATION NUMBER, DOCUMENTS SHOWING THE EXISTENCE OF THE BORROWER, AND OTHER INFORMATION THAT WILL ALLOW THE LENDER TO IDENTIFY YOU. WILL REQUEST AND KEEP A RECORD OF INFORMATION THAT IDENTIFIES BORROWER AND ITS PRINCIPALS, INCLUDING, WITHOUT LIMITATION, LEGAL NAMES, PRINCIPAL PLACE OF BUSINESS OR RESIDENCE, TAX IDENTIFICATION OR SOCIAL SECURITY NUMBERS, BIRTH DATES OF INDIVIDUALS, AND DOCUMENTS SHOWING THE LEGAL EXISTENCE OF AN ENTITY. THIS INFORMATION MAY BE SHARED WITH U.S. GOVERNMENT AGENCIES AS REQUIRED BY THE USA PATRIOT ACT. If there are any questions, please contact the undersigned at ###-###-####, fax ###-###-####. Capmark Finance, Inc. By: /s/ William Collopy --------------------- William Collopy Senior Vice President Cc: Dennis S. Owen Vice President Capmark Finance Inc. 48 Wall Street New York, N.Y. 10005 AGREED TO AND ACCEPTED THIS 14TH DAY OF JUNE, 2006. Borrower: By: /s/ Peter Stokes Name: Peter Stokes Title: Chairman AviStar/PCAA/SunPark Portfolio Page 13 of 13 SCHEDULE 1 - List of Properties