CBL & Associates Properties Provides Update on Financing Activity
June 08 2009 - 4:05PM
Business Wire
CBL & Associates Properties, Inc. (NYSE: CBL) today
announced that it has made significant advancements in the
extension and modification of its $560 million unsecured line of
credit that is currently scheduled to mature in August 2011
(assuming exercise of the remaining one-year extension option). The
Company has received commitments from participants in its $560
million unsecured line of credit, representing approximately $510
million or 91% of the lending commitments thereunder, to extend and
modify the facility. The commitment provides that the facility will
be converted over an 18-month period into a secured facility, and
that the maturity of the facility will be extended from August 2011
to April 2014.
The commitments provide for drawing down amounts available under
the unsecured facility to retire at maturity a number of
non-recourse, property specific mortgages that mature in 2009, 2010
and 2011. The assets will then be pledged as collateral to secure
the facility. The Company expects that amounts outstanding under
the facility will bear interest at an annual rate equal to
one-month, three-month, or six-month LIBOR (at the Company�s
option) plus a spread that increases over the facility�s term,
commencing with a spread of 75 to 120 basis points (depending upon
our leverage ratio) through August 2010, a spread of 145 to 190
basis points (depending upon our leverage ratio) through August
2011 and increasing thereafter to 325 to 425 basis points
(depending upon our leverage ratio) until maturity, with LIBOR
subject to a minimum of 1.50%. CBL is continuing to seek additional
lending commitments to this facility from existing participants in
the facility and from other lending institutions. Wells Fargo Bank,
N.A. acts as administrative agent under this facility.
The Company anticipates closing on the extension and
modification of the unsecured facility in 2009. Full terms and
conditions of the facility will be announced at that time.
The Company previously announced that it has received
commitments from participants in the $525 million secured credit
facility representing approximately $420 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).
To-date, commitments received from lenders in the Company�s $560
million unsecured facility and the Company�s $525 million secured
facility total approximately $930 million. The Company is
continuing to seek additional lending commitments to these
facilities from existing participants in the facility and from
other lending institutions. Assuming these facilities are closed,
the extension and modification agreements will address a
significant portion of the Company�s debt scheduled to mature
through 2011.
The commitments related to the Company�s $560 million unsecured
credit facility and $525 million secured credit facility are
subject to the execution of definitive loan documentation and other
customary closing conditions; accordingly, no assurances can be
given that the Company will be successful in completing the
extension and modification of these credit 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
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.
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 results,
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 information
under the caption �Supplemental Risk Factors� in the preliminary
prospectus supplement for the offering announced hereby and the
information under the captions �Risk Factors� and �Management's
Discussion and Analysis of Financial Condition and Results of
Operations� in the company�s Annual Report on Form 10-K for the
year ended December 31, 2008 and in its Quarterly Report on Form
10-Q for the quarterly period ended March 31, 2009, for a
discussion of such risks and uncertainties.
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