Project Type: Debt Refinancing
Client: St. Lawrence Catholic Church and Newman Center - Minneapolis, MN
CFC Experience and Counsel Made all the Difference
SITUATION: The Newman Center vacated and renovated their original building, leased it to the University of Minnesota and used the leased building as collateral to finance renovation of another building to serve as the new Newman Center. In time, the loan, guaranteed by the Archdiocese, needed to be re-priced. The Archdiocese referred the Newman Center to Catholic Finance Corporation for guidance in the loan re-pricing. CFC was ultimately invited into the process by the realty firm engaged for the building transition.
CFC ROLE: Catholic Finance Corporation, serving as financial advisor to Newman Center leaders, assessed the overall situation, conducted an affordability analysis, designed the desired loan terms and rates and guided the negotiation of terms and rates with the bank. As a result, the loan came in with an interest rate lower than the bank's original offer and below the existing note that was being re-priced, saving more than $10,000 per year through the payback period. The negotiation also released the Archdiocese as loan guarantor.
CLIENT REFLECTION: CFC helped by acting as our negotiating agent with the bank regarding loan terms, rate and conditions and did a lot of advising. They also researched competitive lenders, ultimately negotiating more favorable terms with our current lender and a better interest rate. CFC was always prepared to extend favorable loan terms to us, yet their negotiation with the incumbent bank went so well that we stayed with them.
"Their experience and counsel, especially when we had so little time, made all the difference. And, we've become good friends along the way."
- Fr. Patrick Johnson, CSP, Pastor and Director of Campus Ministry