CBL Closes Modification of Major Credit Facilities Totaling $1.15 Billion

CBL & Associates Properties, Inc. (NYSE: CBL) today announced that it closed the modification of its three major secured credit facilities with aggregate capacity of $1.15 billion including its $520 million secured credit facility, its $525 million secured credit facility and its $105 million secured credit facility. Outstanding balances on all three lines of credit will no longer be subject to a LIBOR floor and will bear interest at an annual rate equal to LIBOR plus a range of 200 to 300 basis points, depending on the Company’s leverage ratio. The reduction in interest rates represents a more than 200 basis point improvement in average borrowing cost for the facilities.

The maturity of the $520 million facility remains August 2011, with an option to extend the facility to April 2014 (subject to continued compliance with the terms of the facility). The maturity of the $525 million facility was extended by two years, from February 2012 to February 2014, with an option to extend the maturity for one additional year to February 2015 (subject to continued compliance with the terms of the facility). The maturity of the $105 million facility was extended for one year to June 2013.

Commenting on the closing, John N. Foy, Chief Financial Officer, said, “We are pleased to extend our major lines of credit and significantly reduce our borrowing costs under the credit facilities. Our bank group continues to demonstrate confidence in our business and the results we have achieved and we appreciate their ongoing commitment.”

Wells Fargo Bank NA is the administrative agent under the $520 million facility and the $525 million facility. First Tennessee Bank NA is the administrative agent under the $105 million facility.

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 157 properties, including 85 regional malls/open-air centers. The properties are located in 26 states and total 84.9 million square feet including 3.4 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 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)
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