CBL Closes Extension and Modification of Two Unsecured Term Loans
July 31 2017 - 9:00AM
Business Wire
CBL & Associates Properties, Inc. (NYSE: CBL) today
announced that it had closed the extension and modification of two
unsecured term loans due to mature in 2018.
“We are extremely pleased to complete the extension and
modification of these term loans,” said Stephen Lebovitz, president
& chief executive officer. “With the significant negativity in
the media toward the industry, this demonstrates the ongoing
confidence and support by lenders in CBL and our strategy of owning
dominant retail real estate.”
“Over the past several years, we have actively pursued balance
sheet goals that included extending our maturity schedule as well
as reducing our total debt,” said Farzana Khaleel, CBL’s chief
financial officer. “We are reinforcing our liquidity by striking an
appropriate balance between secured debt, unsecured term loans,
lines of credit and public bonds. We are pleased to have the
continued confidence and support of our lead banks, Wells Fargo and
First Tennessee, as well as that of more than 15 other
participating banks.”
Two unsecured term loans expiring in 2018 were modified and
extended. The first, with a balance of $400 million, was increased
to a balance of $490 million until July 2018, when it will be
reduced to $300 million for the remainder of its term. New
borrowings under this term loan were used to reduce outstanding
balances on the Company’s unsecured lines of credit. The new term
loan has an initial maturity date of July 2020 with two, one-year
extension options (the 2nd option is at the lenders’ sole
discretion), for a final maturity of July 2022. The term loan bears
an interest rate of 150 basis points over LIBOR, based on CBL’s
current investment grade rating of BBB-/Baa3/BBB-. Wells Fargo Bank
National Association served as Administrative Agent; Citizens Bank,
N.A. served as the syndication agent; and PNC Bank, National
Association and U.S. Bank National Association served as
documentation agents. Wells Fargo Securities, LLC, Citizens Bank,
N.A., PNC Capital Markets LLC and U.S. Bank National Association
served as Joint Lead Arrangers and Joint Bookrunners.
The second unsecured term loan, which currently has a balance of
$50 million and was due to mature in February 2018, was modified to
a new $45 million term loan. The new loan has an initial maturity
date of June 2021 with an additional one-year extension option
available at CBL’s discretion, for a final maturity of June 2022.
The term loan bears interest at a rate of 165 basis points over
LIBOR. First Tennessee Bank NA served as Administrative Agent.
About CBL & Associates Properties,
Inc.
Headquartered in Chattanooga, TN, 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 121
properties, including 78 regional malls/open-air centers. The
properties are located in 27 states and total 75.5 million square
feet including 6.3 million square feet of non-owned shopping
centers managed for third parties. 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" included therein,
for a discussion of such risks and uncertainties.
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version on businesswire.com: http://www.businesswire.com/news/home/20170731005161/en/
CBL & Associates Properties, Inc.Katie Reinsmidt,
423-490-8301EVP – Chief Investment
Officerkatie.reinsmidt@cblproperties.com
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