Taubman Announces The Closing Of $475 Million Unsecured Term Loan
BLOOMFIELD HILLS, Mich., Nov. 13, 2013
BLOOMFIELD HILLS, Mich., Nov. 13, 2013 /PRNewswire/ -- Taubman Centers, Inc.
(NYSE: TCO) today announced the closing of a new $475 million unsecured term
loan. The unsecured term loan includes an accordion feature that would
increase the borrowing capacity to as much as $600 million, if fully exercised
and subject to specified conditions. It will mature in February 2019 and bears
interest at a range based on the company's total leverage ratio. As of the
loan closing, the leverage ratio results in a rate of LIBOR plus 1.35 percent.
"This unsecured term loan is a new form of capital for us," said Lisa A.
Payne, vice chairman and chief financial officer. "It's low cost, flexible,
and relatively long-term in nature. It works perfectly for our capital
structure and slots well within our debt maturities schedule since we have no
other debt maturing in 2019."
Proceeds were used to pay off the current 5.28 percent, $305 million loan on
Beverly Center (Los Angeles, Calif.). Excess proceeds, net of fees and accrued
interest, of $165 million were used to pay down the company's lines of credit.
The entities that own Beverly Center, Dolphin Mall (Miami, Fla.), Fairlane
Town Center (Dearborn, Mich.), Twelve Oaks Mall (Novi, Mich.) and The Shops at
Willow Bend (Plano, Texas) will be guarantors under the new $475 million
unsecured term loan as well as the company's $1.1 billion revolving line of
credit, and will be unencumbered assets under both loans.
The bookrunner, administrative agent, and joint lead arranger for the loan was
J.P. Morgan Chase Bank, N.A. PNC Bank N.A. served as syndication agent and
joint lead arranger. Wells Fargo Bank, N.A. acted as documentation agent. Ten
banks in total participated in the loan.
Separately, the company hasentered into a forward interest rate swap
agreement to reduce its exposure to interest rate fluctuations. The swap will
effectively fix the interest rate on the $475 million loan to a rate of 3
percent beginning January 2, 2014 through its maturity date.
Taubman Centers is an S&P MidCap 400 Real Estate Investment Trust engaged in
the ownership, management and/or leasing of 28 regional, super-regional and
outlet shopping centers in the U.S. and Asia. Taubman's U.S.-owned properties
are the most productive in the publicly held U.S. regional mall industry.
Taubman is currently developing The Mall at University Town Center in
Sarasota, Fla.; The Mall of San Juan in San Juan, Puerto Rico; International
Market Place in Waikiki, Honolulu, Hawaii and shopping malls in Xi'an and
Zhengzhou, China and Hanam, South Korea. Taubman Centers is headquartered in
Bloomfield Hills, Mich.and Taubman Asia, the platform for Taubman Centers'
expansion into China and South Korea, is headquartered in Hong Kong. Founded
in 1950, Taubman has more than 60 years of experience in the shopping center
industry. For more information about Taubman, visit www.taubman.com.
For ease of use, references in this press release to "Taubman Centers,"
"company," "Taubman" or an operating platform mean Taubman Centers, Inc.
and/or one or more of a number of separate, affiliated entities. Business is
actually conducted by an affiliated entity rather than Taubman Centers, Inc.
itself or the named operating platform.
This press release may contain forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. These statements reflect
management's current views with respect to future events and financial
performance. The forward-looking statements included in this release are made
as of the date hereof. Except as required by law, we assume no obligation to
update these forward-looking statements, even if new information becomes
available in the future. Actual results may differ materially from those
expected because of various risks and uncertainties. You should review the
company's filings with the Securities and Exchange Commission, including "Risk
Factors" in its most recent Annual Report on Form 10-K and subsequent
quarterly reports, for a discussion of such risks and uncertainties.
SOURCE Taubman Centers, Inc.
Contact: Karen Mac Donald, Taubman, Director, Communications, 248-258-7469,
email@example.com; Barbara Baker, Taubman, Vice President, Corporate
Affairs & Investor Relations, 248-258-7367, firstname.lastname@example.org
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