CBL to Convert Facilities to Unsecured and Increase Capacity
CHATTANOOGA, Tenn.--(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.
CBL & Associates Properties, Inc.
Katie Reinsmidt, 423-490-8301
Senior
Vice President - Investor Relations and Corporate Investments
katie_reinsmidt@cblproperties.com
Source: CBL & Associates Properties, Inc.