CBL Announces More Than $298 Million in Financing Activity

CBL & Associates Properties, Inc. (NYSE: CBL) today announced $298.8 million in non-recourse financing activity at a combined estimated weighted average interest rate of 6.58%. The Company closed or entered into agreements to close five separate non-recourse loans including one new loan and the refinancing of four existing loans, generating total net proceeds of $51.5 million, after repayment of the existing loans.

Commenting on the financings, John Foy, Vice Chairman and Chief Financial Officer, said, “We are pleased to announce more than $298 million in financing activity at favorable terms. Combined with the successful execution of our plan to pay off our three remaining 2010 CMBS loans at maturity, these financings will address all of our remaining debt maturities this year. We continue to benefit from the improving market conditions, including the reemerging CMBS market, and are excited to generate more than $51 million in excess proceeds from this financing activity.”

The Company closed a new $14.8 million loan secured by The Terrace, an associated center in Chattanooga, TN. The ten-year loan bears a fixed interest rate of 7.25%. CBL also closed an eight-year $115.0 million loan secured by CoolSprings Galleria in Nashville, TN, with a fixed interest rate of 6.98%. The loan replaced the existing $126.9 million loan, which was scheduled to mature in September 2010.

CBL closed two separate ten-year, CMBS loans including an $83.0 million loan secured by Burnsville Center in Minneapolis, MN, and a $21.0 million loan (representing CBL’s 50% share) secured by Parkway Place in Huntsville, AL. CBL also entered into an agreement for a ten-year, $65.0 million non-recourse CMBS loan secured by Valley View Mall in Roanoke, VA, which is expected to close within 30 days with an estimated interest rate of 6.5%. The loan secured by Burnsville Center bears a fixed interest rate of 6.0% and the loan secured by Parkway Place bears a fixed interest rate of 6.5%. These loans will replace three existing loans secured by these properties, aggregating $126.8 million that were scheduled to mature in 2010.

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 163 properties, including 87 regional malls/open-air centers. The properties are located in 27 states and total 86.6 million square feet including 2.2 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 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.

CBL and Associates Prope... (NYSE:CBL)
Historical Stock Chart
From May 2024 to Jun 2024