Stratus Properties entered into a loan agreement with Comerica Bank that renews, extends and modifies Stratus’ $45 million credit facility with Comerica, comprised of a $35 million revolving line of credit and a $10 million term loan, which was scheduled to mature on Dec. 31, 2012.

William H. Armstrong III, chairman of the board, CEO and president of Stratus, stated, “We are pleased to announce that we successfully completed the process to restructure our debt, including reducing interest rates and extending maturities, in a manner that fits our current activities and gives us additional financial flexibility. We value our business relationship with Comerica and look forward to continuing to work together to finance our business. We are also evaluating refinancing options for the W Austin Hotel & Residences project when the Beal Bank loan is open for prepayment in July 2013.”

The loan agreement provides for a $48 million credit facility consists of a $35 million revolving line of credit, $3 million for letters of credit and a $10 million construction loan. The interest rate applicable to amounts borrowed under each loan is an annual rate of LIBOR plus 4%, with a minimum interest rate of 6%. The credit facility will mature on Nov. 30, 2014.

Proceeds from the revolving loan may be used to fund Stratus’ working capital needs, including land acquisitions; however, without prior approval from Comerica, individual land acquisitions shall not exceed $3 million and aggregate land transactions shall not exceed $10 million. Proceeds from the letter of credit tranche shall be used to fund additional working capital needs. Proceeds from the construction loan shall be used to develop the regional road and infrastructure for Section N of Barton Creek.

Stratus’ obligations under the loan are secured by substantially all of Stratus’ assets, except for properties that are encumbered by separate non-recourse permanent loan financing.