Santo Domingo.– Fitch Ratings has downgraded the rating on Cap Cana, S.A.'s $250 million senior secured notes (due 2013) from 'CCC/RR4' to 'CC/RR4'.
The rating remains on Rating Watch Negative due to an evolving
situation. The action follows an announcement of an expected
restructuring to the 2013 notes.
Cap Cana recently completed a restructuring on its $100 million bridge
loan facility that was due on Nov. 19, 2008.
Regarding the $250 million
outstanding of 2013 notes, Cap Cana is offering three different
restructuring alternatives to current holders of the notes:
- An offer to repurchase up to $100 million at a price of 33.4 cents on
the dollar plus accrued interest;
- An exchanged note with an expected two year maturity extension along
with an increased collateral package and an increased coupon;
- An exchange for certificates of a liquidating trust where holders will
be repaid through the sale of certain Cap Cana properties.
Written by: jacirez 
, 22 Dec 2008 1:07 PM
From: Iran, Zähedän
Ok, Ok...So the possibility of a U.S $20,000.00 Condo is still viable, right...?
From: Cuba, it is a secret the censors are looking for me
yes but you will need to be well armed....with machine gun emplacements....those are Mad Max prices...I think you will have to freeze in the Tundra for a while yet ....only 6 more months till spring or Mud as you call it up there
From: United States
Gotta love the rating agencies, once again late with the downgrades. When even DT.com had articles on the troubles dating back some time you'd think these guys would not hesitate to pull the ratings trigger. I guess you give someone the benefit of the doubt if they are paying you to rate them :P
Written by: abc200, 22 Dec 2008 1:57 PM
From: United Kingdom, Dominican Republic
Wise investors will invest. Unlike many investments in this category this is land asset based.
S.
From: United States
sorry, ABC, but CCR4 means likely to default. no sane guy is going to invest in something as dubious as that.
From: United States
Someone will buy if the price is right. At 33.4 cents on the dollar I think there are MBS strips trading around that much with higher ratings, so you can choose your poison...DR real estate or US residential mortgages.
From: United States
manhattanite, as a man of greater knowledge in these matters, which do you think is a safer bet? manhattan real estate, or cap cana junk bonds?
From: United States
Well I don't have greater knowledge on RE, always avoided it. I'd still go with Manhattan real estate, though I wouldn't speak of Manhattan RE in the same sentence as Cap Cana or MBS strips. Until the economy gets bad enough that middle American mom and dad won't indulge junior's dream to be an NYCer I wouldn't bet against Manhattan.
From: United States
manhattanite, i was alluding to your greater knowledge of bonds. my limited understanding tells me that a CC bond is one step from the bottom, before the bond isssuer is actually in default. in order for people to buy these junk bonds, they are going to have to yield high risk premium interest rates. please correct me when i misstep.
From: United States
That is correct. These already have a great yield built in as you are paying 33 cents for every dollar of principal you will allegedly receive at maturity...however I just re-read and it seems it is the Cap Cana group offering to repurchase the bonds at this depressed price. So the offer on the table for those who hold the bonds is to eat the loss now (assuming they got in at face value), or hope things turn around and the other options are able to return more of the principal. Wow what a shave if you got into these at face value or even anywhere over 50.
Written by: abc200, 22 Dec 2008 6:57 PM
From: United Kingdom, Dominican Republic
My understanding is that this grade of bond should have a 30-50 % chance of redemption at full value. My point is that unlike some bonds out there this is backed by land and in the event of default a partial payout is possible. This does not seem to be factored into the price or am I missing something?
S.
From: United States
ABC, land in the caribbean is not good collateral, at least not in these times. this is not manhattan real estate we are discussing. if the bond issuer defaults, the land will have to be sold to recoup the principal. do you really believe that any lending institution wants to deal with such a hassle? it is not like lending a guy 20,000 to buy a toyota camry, then repossessing it and trying to sell it. we are talking about 100 million dollars, in todays economic ecosystem. the value and profitability of the land is predicated entirely upon the tourist trade, which could go into retrogression for any number of reasons. i really want to see who will pony up 100 million to finance this project, when people with stable employment in developed countries cannot get a loan for 5000 dollars to start a home bakery!
Written by: devin11, 22 Dec 2008 7:47 PM
From: United States, The Greatest City
Excellent point Dred, as usual. In an economic climate where banks with trillion dollar assets are not lending money to each other, even in the short term, where will these proposed investors come from.
Not to mention that Bernard Madoff has just knocked off many of the biggest real estate power players in the world.
From: United States
devin, most banks in the G8 are not making any loans at present; they are making their money solely on services, not interest payments. why, you ask? they are deathly afraid of taking risks, even with the soundest of applications..i can imagine someone coming into a bank in the USA looking for 100 million to prop up Cap Cana. pass the smelling salts, please! if it can be done, how come a personage such as Trump cannot pull it off?
Written by: devin11, 22 Dec 2008 8:18 PM
From: United States, The Greatest City
If you want to make a banker run away just ask for commercial or personal real estate financing. It is the biggest taboo in the banking and financial industry. When these loans do come on line again it will be with such prohibiting regulation that even the most credit worthy applicants under the age of 100 will have to bring letters of co-signature from their great-great-grandparents.
Written by: abc200, 22 Dec 2008 8:33 PM
From: United Kingdom, Dominican Republic
manhatten real estate must be worse. You cannot parcel it up and sell it in lots neither now or in the future.
S.
From: United States
ABC, manhattan real estate cannot be compared to any other real estate. it is a tiny island, and the value of land there will never go down, neither today, nor tomorrow. you cannot equate, nor compare it with cap cana real estate. there are beautiful tracts of land with beaches all over the world; manhattan has no equivalent anywhere.
From: United States
ABC, just the collective value of Colombia, NYU and Yeshiva universities is probably worth more than cap cana.
Written by: josean, 22 Dec 2008 8:46 PM
From: United States
As I have said before CAP CACA!
From: United States
touche josean!
Written by: devin11, 22 Dec 2008 8:57 PM
From: United States, The Greatest City
ABC,
Manhattan real estate is non-comparable to most other world real estate markets. In the last quarter, median home prices in Manhattan rose to between $975,000 and $1,025,000,. That is an increase of between 13% and 23% over the same quarter in 2007. While sales are definitely down in this softer real estate market the prices have gone up!!! Where else is this the case? I know that you have very few if any positive things to say about the US but please don't allow your personal disdain to cloud reality.
The source for the figures provided were extricated from the CNN Money website, for the benefit of any doubters.
From: United States
i was very surprised that a person such as ABC, who usually has facts at his disposal, could compare manhattan with anywhere else. you would NEVER, in this lifetime, ever see people bundling manhattan real estate to dispose of it more easily. it is a bulletproof market.
Written by: devin11, 22 Dec 2008 9:08 PM
From: United States, The Greatest City
Dread,
You don't even have to consider collective value, just the main campus of NYU in the West Village, the Palladium dorm property in Union Square and the waterfront NYU Hospital property on the East River, not including the many other properties owned by NYU, any of those three mentioned properties are worth far more than all of Cap Cana.
Written by: abc200, 22 Dec 2008 9:38 PM
From: United Kingdom, Dominican Republic
From: United States
devin, after i posted the remark, i asked myself why i bothered to think in terms of a group of universities, rather than select just one. surely, as you point out, NYU property is worth much more than cap cana. and ABC, if you believe that manhattan real estate is going to fail, i would not hold my breath if i was you.
From: Cuba, it is a secret the censors are looking for me
yes devin and just imagine we hornswoggled the locals and got the whole island for a bag of shells and a couple of mirrors
Written by: devin11, 22 Dec 2008 9:51 PM
From: United States, The Greatest City
ABC,
Sir, you are referencing the Manhattan Beach area in California. We are referencing the borough of Manhattan which is one of the five boroughs that comprise New York City. We are not even writing about the same thing. If your question is still the same regarding income streams from Manhattan (NYC) the cause as to it's real estate invulnerability is simply supply and demand.
Written by: devin11, 22 Dec 2008 9:52 PM
From: United States, The Greatest City
Yes GC, but they were very good mirrors and only dropped once.
From: United States
actually, GC, if you factor in a 5% interest rate on the initial price paid for manhattan island, based on the time value of money, the deal was worth billions of dollars! we only think it was a steal because of the price paid at the time.
From: Cuba, it is a secret the censors are looking for me
very good dread ...now I get it...it was in inflated mirrors and trinkets
From: Cuba, it is a secret the censors are looking for me
Devin please stop trying to reason with that imbecile ...he cannot even spell it let alone know that there is a Manhattan Beach in Cal.
From: Cuba, it is a secret the censors are looking for me
you see he suffered from rickets from being on Rations in the UK back in the 50s hes never gotten over the protein deficiency and lead poisoning either ....he blames the USA poor wretched moron
From: Cuba, it is a secret the censors are looking for me
Speaking of the UK let us all hope that the outcome of Cap Cana is similar to the crash of the Canary Wharf project...similar but then again different
From: United States
yes, GC. if those original sellers had put the money in the bank at 5% interest, instead of using it to buy moonshine, it would have been worth billions today.
From: Cuba, it is a secret the censors are looking for me
yes dread I know what you mean I could have bought Xerox at 25 cents a share but I truly believed in carbon paper.and that it was the future...who knew...Now I am stuck with my Hoola Hoop and Buggy whip stocks
From: United States
you insane guy; i should take your buggy whip to you. sadly, you might like it.
From: Cuba, it is a secret the censors are looking for me
not my cup of tea....I have heard chill is into it though ever since he was traumatized in the army stockade by that Turkish American master Sargent....poor guy never got over that
Written by: devin11, 22 Dec 2008 10:44 PM
From: United States, The Greatest City
GC,
Have you seen your last monthly brokers statement, Buggy Whip stocks are the highest upward trending sector in the financial trade markets, bucking the trends of the auto stocks. You may be sitting on a gold mine buddy, please remember me as we all convert to horse drawn carriages, I may need purchase financing.
From: Cuba, it is a secret the censors are looking for me
not to worry devin I will share my bonanza and start a tax free foundation modeled on the lines of " Bubba of Arabia " and his slush fund
Written by: abc200, 23 Dec 2008 7:54 AM
From: United Kingdom, Dominican Republic
Alll my friends think about Manhatten Beach - East coast definitely finished - tawdy old buildings and crumbling infrastructure, overpaid banking executives, crooks, gangsters, failing eductation - you know the sort of thing. Now a friends son lives in Docklands near Canary Warf. Superb modern buildings, good infrastructure, own airport within 10 minutes, some of the best schools in Europe - need I go on?
S.
From: Cuba, it is a secret the censors are looking for me
no please do not...you are the expert of nonsense...An expert is one who knows more and more about less and less until he knows absolutely everything about nothing.
Written by: abc200, 23 Dec 2008 8:51 AM
From: United Kingdom, Dominican Republic
US government may give special tax breaks for buggy whips. Too important an industry to let fail.
Amish are finding the price of buggy whips too high and the Fascist US government is requiring these good folk to have their photos taken for interstate travel. Such is ths sad end of American Liberty!
http://www.time.com/time/columnist/stein/article/0,9565,1118526,00.html
S.
From: Cuba, it is a secret the censors are looking for me
Written by: abc200, 23 Dec 2008 10:07 AM
From: United Kingdom, Dominican Republic
From: Cuba, it is a secret the censors are looking for me
when Walmart buys La Sirena I will see if I can get you a job as a greeter at San Fran Macorix store ...you can busk there at the front door make an honest living for a change
Written by: abc200, 23 Dec 2008 12:54 PM
From: United Kingdom, Dominican Republic
They will send you back to your soup kitchen society and give the job to a loyal Dominican!
S.
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S.
S.
Not to mention that Bernard Madoff has just knocked off many of the biggest real estate power players in the world.
S.
Manhattan real estate is non-comparable to most other world real estate markets. In the last quarter, median home prices in Manhattan rose to between $975,000 and $1,025,000,. That is an increase of between 13% and 23% over the same quarter in 2007. While sales are definitely down in this softer real estate market the prices have gone up!!! Where else is this the case? I know that you have very few if any positive things to say about the US but please don't allow your personal disdain to cloud reality.
The source for the figures provided were extricated from the CNN Money website, for the benefit of any doubters.
You don't even have to consider collective value, just the main campus of NYU in the West Village, the Palladium dorm property in Union Square and the waterfront NYU Hospital property on the East River, not including the many other properties owned by NYU, any of those three mentioned properties are worth far more than all of Cap Cana.
http://www.altosresearch.com/research/CA/MANHATTAN+BEACH
The 2M dollar condo there?
Ponzi schemes fail and Manhatten real estate is one big Ponzi scheme.
S.
Sir, you are referencing the Manhattan Beach area in California. We are referencing the borough of Manhattan which is one of the five boroughs that comprise New York City. We are not even writing about the same thing. If your question is still the same regarding income streams from Manhattan (NYC) the cause as to it's real estate invulnerability is simply supply and demand.
Have you seen your last monthly brokers statement, Buggy Whip stocks are the highest upward trending sector in the financial trade markets, bucking the trends of the auto stocks. You may be sitting on a gold mine buddy, please remember me as we all convert to horse drawn carriages, I may need purchase financing.
S.
Amish are finding the price of buggy whips too high and the Fascist US government is requiring these good folk to have their photos taken for interstate travel. Such is ths sad end of American Liberty!
http://www.time.com/time/columnist/stein/article/0,9565,1118526,00.html
S.
May transgressions be pardoned!
Increasing US criminality makes this supplication essential.
p.s. I am in a generous mood.
S.
S.