General Growth Properties Announces Commitment to Amend Acquisition Facility
February 15 2006 - 10:56AM
Business Wire
General Growth Properties, Inc. (NYSE:GGP) announced it has
received the lender commitments required to amend and restate the
2004 Credit Facility, which was put into place to purchase The
Rouse Company. "We were very pleased at the positive response from
the lending community as we took advantage of our rapid and
successful integration with The Rouse Company and received
substantially enhanced loan terms and conditions just 15 months
after closing. This transaction extends many of our existing
lending relationships and establishes several new ones," noted CFO
Bernie Freibaum. The $5.0 billion amended and restated Senior
Credit Facility will consist of a $2.85 billion Term Loan, a $650
million revolving credit facility and a $1.5 billion Short-Term
Term Loan, the proceeds of which will be applied to the 2004 Credit
Facility. The applicable interest rates will be based on a spread
over LIBOR that will vary according to leverage. Initially, that
spread is expected to be 125 basis points, which is 50 and 75 basis
points lower than that of the existing Term Loans A and B,
respectively. Funding is currently scheduled to be complete by the
end of February, 2006. The $3.5 billion Senior and Revolving Credit
Facility has a four-year term and a one-year extension option. The
$1.5 billion Short-Term Term Loan is due by year-end 2006 and it is
expected to be repaid primarily with excess proceeds from new fixed
rate non-recourse mortgage loans on assets that are currently
underleveraged. As a result of this and other planned prepayments,
the company expects to record a $5.4 million non-cash charge for
unamortized loan fees in the first quarter of 2006. General Growth
Properties, Inc. is the second largest U.S.-based publicly traded
Real Estate Investment Trust (REIT). General Growth currently has
an ownership interest in or management responsibility for a
portfolio of more than 200 regional shopping malls in 44 states, as
well as ownership in planned community developments and commercial
office buildings. The portfolio totals approximately 200 million
square feet of retail space and includes over 24,000 retail stores
nationwide. General Growth Properties, Inc. is listed on the New
York Stock Exchange under the symbol GGP. For more information,
please visit the company website at www.generalgrowth.com. This
release contains forward-looking statements. Actual results may
differ materially from the results suggested by these
forward-looking statements, for a number of reasons, including, but
not limited to, the retail market, tenant occupancy and tenant
bankruptcies, the level of our indebtedness and interest rates,
market conditions and land sales in our Master Planned Communities
segment, our ability to manage our growth and the effects of the
recent events in the Gulf Coast region of the United States.
Readers are referred to the documents filed by General Growth
Properties, Inc. with the SEC, specifically the most recent reports
on Form 10-K and 10-Q, which further identify the important risk
factors which could cause actual results to differ materially from
the forward-looking statements in this release. The Company
disclaims any obligation to update any forward-looking statements.
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