CBL Increasing and Extending Major Unsecured Credit Facilities Totaling $1.2
CBL to Convert Facilities to Unsecured and Increase Capacity
CHATTANOOGA, Tenn. -- November 06, 2012
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
CBL & Associates Properties, Inc.
Katie Reinsmidt, 423-490-8301
Senior Vice President - Investor Relations and Corporate Investments
Press spacebar to pause and continue. Press esc to stop.