ALBANY — The real estate entity that manages the building finances at SUNY Polytechnic Institute's Albany campus has a plan to pay its lenders $3.5 million in bank fees in order to delay repayment of $259 million in construction loans that are coming due next month in the event a scheduled refinancing can't be completed on time due to the COVID-19 outbreak.
The nonprofit entity that oversees SUNY Poly's real estate and research programs met last week to approve the bank fees – to be paid to M&T Bank and KeyBank – if plans to refinance $259 million in loans coming due through state-issued bonds collapses amid the current economic uncertainty.
However, the entity, called NY CREATES, says it hopes the bond offering that the New York State Transportation Development Corp. is planning to executive later this month will happen on time and that the deal with its banks won't be needed. The New York State Transportation Development Corp. is a state board that helps finance airport construction projects.
The bond sale is scheduled for April 15.
"The NY CREATES board of directors took the action last week in the event that the bond offering was not completed in time," a SUNY Poly spokesman told the Times Union Wednesday.
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The finance committee of NY CREATES told the board last week that the bond sale was being delayed.
"Due to current unprecedented market conditions, the public offering and sale of the (bonds) has been delayed," the NY CREATES board stated in a resolution issued last week. "Given the mandatory tender and maturity dates in early May 体彩app官方网站 for the prior indebtedness, the corporation determined to engage its existing lenders (M&T Bank and KeyBank)) for a one-year extension of the prior indebtedness."
That now doesn't appear to be the case, according to NY CREATES, and it is hopeful the banks will be paid off when the bond sale happens.
The extension wasn't going to come cheap. NY CREATES agreed to pay M&T Bank and KeyBank more than $3.5 million in so-called extension and arrangement fees, of which NY CREATES would pay for through a $5 million credit line increase from M&T Bank.