CHATTANOOGA, Tenn.--(BUSINESS WIRE)--
CBL & Associates Properties, Inc. (NYSE: CBL) today announced
significant progress on the extension and modification of the $524.85
million secured credit facility that is currently scheduled to mature in
February 2010. To-date the Company has received commitments from
participants in the credit facility representing approximately $420.0
million or 80% of the lending commitments thereunder. The commitments
reflect an extension of the facility from February 2010 to February
2012, with an option to extend the maturity for one additional year
(subject to continued compliance with the terms of the facility).
Additional information on the proposed terms and conditions of the
facility is provided below.
"We are pleased to announce this major advancement, successfully
addressing a majority of our debt maturities through 2010," said John N.
Foy, chief financial officer for CBL & Associates Properties, Inc. "The
extension and modification of the secured credit facility will extend
the outside maturity date into 2013, a material enhancement to our debt
expiration schedule. We are making excellent progress towards
maintaining 100% capacity. There are two foreign lending institutions
that have provided positive indications, but require additional time to
advance the approvals through their credit committees. We look forward
to providing updates as we continue to move forward."
Foy added, "We are currently in discussions on a number of joint venture
and disposition opportunities that, while still in the early stages,
look promising. These actions are expected to strongly contribute to the
Company's de-leveraging efforts and our long-term plan to secure the
unsecured credit facility, which matures in August 2011."
Secured Credit Facility:
The commitments reflect that amounts outstanding under the facility are
expected to bear interest at an annual rate equal to LIBOR plus 325 to
425 basis points, with LIBOR subject to a minimum of 1.50% for periods
commencing on or after January 1, 2010. The Company's secured credit
facility currently bears interest at an annual rate equal to LIBOR plus
80 basis points. The Company is continuing to seek additional lending
commitments to this facility from existing participants in the facility
and from other lending institutions. Wells Fargo Bank NA is the
administrative agent under this facility.
The Company anticipates closing on the extension and modification
agreement in 2009. Full terms and conditions of the facility will be
announced at that time.
Mortgage Refinancing Activity:
The Company also announced that it had entered into a commitment for two
separate 10-year, non-recourse loans including a $33.6 million loan
secured by Honey Creek Mall in Terre Haute, IN and a $57.8 million loan
secured by Volusia Mall in Daytona Beach, FL. The loans are with the
existing institutional lender, have an interest rate of 8.0% and are
expected to close within 30 days. These loans replace an existing $30.1
million loan secured by Honey Creek Mall and a $51.2 million loan
secured by Volusia Mall. CBL intends to use the approximately $10.1
million of excess proceeds, plus cash on hand, to pay off the $30.2
million loan secured by Bonita Lakes Mall in Meridian, MS. These
advancements successfully address all of the Company's 2009 loan
maturities, except for a $53.0 million non-recourse loan secured by
Eastgate Mall in Cincinnati, OH. The Company is currently in discussions
with the existing lender as well as alternate lending institutions to
extend or refinance the loan.
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 interests in
or manages 159 properties, including 88 regional malls/open-air centers.
The properties are located in 27 states and total 86.0 million square
feet including 2.2 million square feet of non-owned shopping centers
managed for third parties. CBL currently has four projects under
construction totaling 2.4 million square feet including The Promenade in
D'Iberville, MS; Settlers Ridge in Pittsburgh, PA; The Pavilion at Port
Orange in Port Orange, FL; and one open-air center. Headquartered in
Chattanooga, TN, CBL has regional offices in Boston (Waltham), MA,
Dallas, 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 Annual Report on Form 10-K and the
"Management's Discussion and Analysis of Financial Condition and Results
of Operations" incorporated by reference therein, for a discussion of
such risks and uncertainties.
Source: CBL & Associates Properties, Inc.
Contact: CBL & Associates Properties, Inc.
Katie Reinsmidt, 423-490-8301
Vice President - Corporate Communications and Investor Relations
katie_reinsmidt@cblproperties.com