Harbinger's Falcone Takes $22.5 Million Mortgage

Dec 17 2010 | 12:42am ET

Harbinger Capital Management founder Philip Falcone seems to be in need of an awful lot of cash these days.

Falcone and his wife, Lisa Maria, took a $22.5 million mortgage on their Upper East Side townhouse in the spring, The Wall Street Journal reports. The couple bought the home—one of the largest in Manhattan, formerly owned by Penthouse founder Bob Guccione—just two years ago for $49 million. In cash.

The mortgage followed a $113 million loan Falcone took from Harbinger's hedge funds last year to cover a tax bill. More recently, the Falcones secured a loan for an unspecified amount, putting up some of their art collection as collateral.

The East 67th Street home, with its 27 rooms, had no mortgage on it before May. The mortgage is of the 30-year adjustable-rate variety, with an initial rate of 2.357%. Citigroup provided the loan.

"This is a normal ordinary course mortgage financing on Mr. Falcone's home that was completed seven months ago and has no relevance to Harbinger Capital Partners' business or its investors," a Falcone spokesman said.

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