Thompson National Properties ducks default but cuts interest payments

Notes program extends maturity to 2016

Nov 12, 2012 @ 3:06 pm

By Bruce Kelly

Thompson National Properties LLC has ducked a default on one of its note programs, but investors will be getting less of a payout than they were promised, the company reported Friday.

The real estate firm is the sponsor of a nontraded real estate investment trust, TNP Strategic Retail Trust Inc. In a filing with the Securities and Exchange Commission on Nov. 9, the REIT reported that a majority of note holders in the program voted to modify the terms, moving it out of default.

The TNP 12% Notes Program LLC suspended interest payments to investors in July but said it intended to restart them in 2013.

Investors will see sharply lower interest payments, however, and the notes' maturity was extended until 2016, according to the SEC filing.

Meanwhile, Thompson National Properties is facing a federal lawsuit in Colorado from two investors in the note program. The investors, Doug and Sheryl Hitchens, filed a complaint in September in U.S. District Court in Colorado alleging damages from the company's breach of a guarantee on the note, failure to pay interest on the note and refusal to redeem the note. In 2008, the couple purchased a note of $100,000 from Thompson.

The investor vote waived “any prior defaults under the note program,” the filing states. Meanwhile, “the interest rate has been significantly reduced.”

Thompson National Properties is the latest venture of Tony Thompson, one of the best-known real estate investors in the independent broker-dealer industry. He launched the firm in 2008 and is its chief executive.

Earlier, he founded Triple Net Properties LLC, which packaged real estate investments known as tenant-in-common exchanges, which were sold through independent broker-dealers.

In an email to InvestmentNews, Mr. Thompson did not comment about the changes in the note program. Mr. Thompson, however, said he believed that the matter of the Colorado lawsuit was nearly resolved or had been resolved.

The TNP 12% Notes Program raised $21.5 million from 418 investors in 2008 and 2009. The purpose of the notes was to meet general obligations of the sponsor. In July, Thompson National Properties said it would pay investors the remaining interest and principal on or before the maturity date of June 2013.

Thompson National Properties' largest investment program is its REIT, TNP Strategic Retail Trust, which has assets valued close to $300 million. Last Tuesday, the REIT said that its board of directors had increased the estimated per share value of the company's common stock to $10.60 per share as of November 9. Previously, the estimated per share value had been $10.40 per share.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

Why some retirement plan advisers think Fidelity is invading their turf

InvestmentNews editor Frederick P. Gabriel Jr. and reporter Greg Iacurci talk about this week's cover story that looks at whether Fidelity Investments is stepping on the toes of retirement plan advisers.

Latest news & opinion

Is Fidelity competing with retirement plan advisers?

As the Boston-based mutual fund giant expands the products and services it brings to the retirement market, some financial advisers say the firm is encroaching on their turf.

Gun violence hits investment strategies, sparks political debates with advisers

Screening out weapons companies has limited downside.

Whistleblower said to collect $30 million in JPMorgan case

The bank did not properly disclose that it was steering asset-management customers into investments that would be profitable for JPMorgan Chase.

Social Security underpaid 82% of dually entitled widows and widowers

Agency failed to tell survivors that they could switch to a higher retirement benefit later.

If Finra eases firm oversight of outside business activities, broker-dealers could lose revenue

Brokerage firms would no longer be able to charge reps for supervising nonaffiliated RIAs.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print