Gramercy Issues $50M in Trust Securities

Gramercy Capital Corp., a New York-based commercial real estate specialty finance company, has announced the issuance of $50 million of trust preferred securities through a wholly owned subsidiary.The 30-year securities were priced to bear interest at 2.65% above the London interbank offered rate for the first 10 years. (Through a swap agreement, Gramercy said it fixed the effective interest rate at 7.43% during that period.) Thereafter, the rate will float at 2.70% above the three-month LIBOR. Gramercy Capital specializes in acquiring first mortgage loans, subordinate mortgage participations, mezzanine loans, preferred equity, and net-lease investments involving commercial property. The issuing subsidiary is Gramercy Capital Trust III. The company can be found online at http://www.gramercycapitalcorp.com.