Press Room
News Release
FOR IMMEDIATE RELEASE
December 21, 2004
Vandeventer Black Attorneys Close $25 Million Debt And Equity Deal
Recently, Vandeventer Black LLP attorney Daniel D. Khoury closed a $25 million combination debt financing and equity private placement offering to construct the Outer Banks’ newest hotel, a Hilton Garden Inn, which will be located on the oceanfront at the Kitty Hawk Pier one mile east of the Wright Memorial Bridge.
“We are seeing more and more interest in private equity financing opportunities as interest rates trend upward,” says Khoury. The private placement portion of the transaction was structured to be eligible for sale to sophisticated investors by using a “safe haven” exemption from the Securities and Exchange Act of 1933. The Act was enacted shortly after the stock market crash of 1929 to protect the investing public. Under the Act, securities must be registered with the Securities and Exchange Commission prior to sale. However, Congress realized that the sale of securities to sophisticated investors was an acceptable practice that did not require the review or protection offered by the Securities and Exchange Commission. By using that exemption, Khoury enabled his client to raise the capital it needed without the expense and time delays of registration. As an added benefit, the use of an exemption allowed his client to avoid the expense and burden of public reporting required under the Exchange Act of 1934.
The use of private placements is becoming a financing trend for those raising funds. The benefit Khoury says is “a lower overall financing cost that’s created when developers raise capital by selling equity interests to private investors verses borrowing 100% from traditional lenders.” Vandeventer Black attorneys Patrick Herman and Barbara Byrd assisted Khoury.
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For Further Information Contact:
Nancy Harrison Parker
Marketing Director
(757) 446-8682