CBL Increasing and Extending Major Unsecured Credit Facilities Totaling $1.2 Billion
07 November 2012 - 6:05AM
Business Wire
CBL & Associates Properties, Inc. (NYSE: CBL) today
announced that it has received fully executed loan commitments to
modify and extend its two major credit facilities, increasing the
aggregate capacity by $155.0 million to $1.2 billion. CBL will
convert both facilities from secured to unsecured, increasing the
capacity of each facility to $600 million, extending the terms and
reducing the average borrowing rate by 60 basis points. The
outstanding balances on the two facilities will bear interest at an
annual rate equal to LIBOR plus a range of 155 to 210 basis points,
depending on the Company’s leverage ratio. The closing is
anticipated in mid-November.
The maturities of both facilities will be extended by three
years with the first $600 million facility maturing November 2015,
with an option to extend the maturity for one additional year to
November 2016 (subject to continued compliance with the terms of
the facility). The maturity of the second $600 million facility
will be extended to November 2016 with an option to extend the
maturity for one additional year to November 2017 (subject to
continued compliance with the terms of the facility).
Commenting on the new facilities, Farzana Mitchell, chief
financial officer, said, “The conversion of our upsized facilities
to unsecured will increase our flexibility and capacity by creating
a large unencumbered property pool and will eliminate the
administrative costs of maintaining a secured facility. As we look
to our future capital and financing needs, we believe it is
important to have access to a variety of sources of capital and
these new facilities help us to accomplish that goal. We are
pleased to continue to receive the strong support and confidence of
our bank group.”
Wells Fargo Securities, LLC and U.S. Bank NA are serving as lead
arrangers under the facilities.
About CBL & Associates Properties,
Inc.
CBL is one of the largest and most active owners and developers
of malls and shopping centers in the United States. CBL owns, holds
interest in or manages 164 properties, including 95 regional
malls/open-air centers. The properties are located in 27 states and
total 92.9 million square feet including 9.4 million square feet of
non-owned shopping centers managed for third parties. Headquartered
in Chattanooga, TN, CBL has regional offices in Boston (Waltham),
MA, Dallas (Irving), TX, and St. Louis, MO. Additional information
can be found at cblproperties.com.
Information included herein contains "forward-looking
statements" within the meaning of the federal securities laws. Such
statements are inherently subject to risks and uncertainties, many
of which cannot be predicted with accuracy and some of which might
not even be anticipated. Future events and actual events, financial
and otherwise, may differ materially from the events and results
discussed in the forward-looking statements. The reader is directed
to the Company's various filings with the Securities and Exchange
Commission, including, without limitation, the Company's most
recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q
and the sections therein captioned "Management's Discussion and
Analysis of Financial Condition and Results of Operations" and
“Risk Factors”, for a discussion of such risks and
uncertainties.
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