CBL Properties Announces Full Redemption of 10% Senior Secured Notes Utilizing Proceeds From a New $360 Million Non-Recourse Secured Financing
28 May 2022 - 12:45AM
Business Wire
Eliminates Corporate Guaranty
Generates Interest Savings and Improved Free
Cash Flow
Creates Significant Unencumbered
Pool
CBL Properties (NYSE: CBL) today announced the planned
redemption of all $335.0 million outstanding 10% Senior Secured
Notes. CBL will fund the redemption utilizing proceeds from a new
$360.0 million non-recourse loan to be secured by a pool of
high-quality outparcels and open-air centers.
“This new financing is a major milestone in the strengthening of
CBL and our balance sheet,” said Stephen Lebovitz, chief executive
officer, CBL Properties. “It is the latest in a number of recent
financings to validate the tremendous value of our company and our
portfolio.”
Lebovitz added, “Following the redemption of the remaining
outstanding 10% Notes, the corporate guaranty is eliminated, free
cash flow is improved through a reduction in interest expense, and
we will have more than $75 million in estimated unencumbered NOI,
providing meaningful future financial flexibility. With more than
$335 million of cash on hand at first quarter-end and considerable
ongoing generation of free cash flow from operations, we are
extremely well-positioned to pursue opportunities that will return
excellent value to our shareholders.”
Today, the Company’s wholly owned subsidiary, CBL &
Associates Holdco II, LLC (the “Issuer”) delivered a conditional
notice of redemption to holders of its 10% Senior Secured Notes due
2029 (the “10% Notes”), pursuant to the terms of the indenture
governing the 10% Notes, to redeem the remaining $335.0 million
aggregate principal amount of 10% Notes (the “Redemption”) on June
7, 2022. The Redemption is conditioned upon the receipt by the
Issuer of net cash proceeds from the new financing. There can be no
assurances as to when or if such condition will be satisfied and
the Issuer may waive the condition at its discretion.
The new loan will be provided by an institutional lender. It
will be secured by a pool of 91 outparcels located across CBL’s
portfolio and 13 open-air centers. The open-air centers include
Alamance Crossing West in Burlington, NC, Coolspring Crossing and
The Courtyard at Hickory Hollow in Nashville, TN, Frontier Square
in Cheyenne, WY, Gunbarrel Pointe in Chattanooga, TN, Harford Mall
Annex in Bel Aire, MD, The Plaza at Fayette in Lexington, KY,
Sunrise Commons in Brownsville, TX, The Shoppes at St. Clair in
Fairview Heights, IL, The Landing at Arbor Place in Atlanta, GA,
West Towne Crossing and West Towne District in Madison, WI, and
Westgate Crossing in Spartanburg, SC.
Terms of the loan will be announced upon closing, which is
expected on or around June 7, 2022, subject to completion of
customary due diligence and documentation.
This press release does not constitute an offer to sell or
purchase, or a solicitation of an offer to sell or purchase, or the
solicitation of tenders or consents with respect to, any security.
No offer, solicitation, purchase or sale will be made in any
jurisdiction in which such an offer, solicitation or sale would be
unlawful.
Moelis & Company LLC acted as Exclusive Placement Agent to
CBL on the transaction.
About CBL Properties
Headquartered in Chattanooga, TN, CBL Properties owns and
manages a national portfolio of market-dominant properties located
in dynamic and growing communities. CBL’s owned and managed
portfolio is comprised of 95 properties totaling 59.6 million
square feet across 24 states, including 57 high-quality enclosed
malls, outlet centers and lifestyle retail centers as well as more
than 30 open-air centers and other assets. CBL seeks to
continuously strengthen its company and portfolio through active
management, aggressive leasing and profitable reinvestment in its
properties. For more information visit 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 Annual
Report on Form 10-K and the “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” included therein,
for a discussion of such risks and uncertainties.
CBL_Corp
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version on businesswire.com: https://www.businesswire.com/news/home/20220527005293/en/
Investor Contact: Katie Reinsmidt, Executive Vice President
& Chief Investment Officer, 423.490.8301,
Katie.Reinsmidt@cblproperties.com Media Contact: Stacey Keating,
Vice President– Corporate Communications, 423.490.8361,
Stacey.Keating@cblproperties.com
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