General Growth Announces Sale of GGP Limited Partnership 3.98% Senior Exchangeable Notes
April 10 2007 - 5:50PM
Business Wire
General Growth Properties, Inc. (NYSE:GGP) announced that GGP
Limited Partnership, the operating partnership through which GGP
conducts business, has agreed to sell $1.55 billion aggregate
principal amount of 3.98% Exchangeable Senior Notes due 2027
pursuant to Rule 144A under the Securities Act of 1933. GGP Limited
Partnership has also granted the initial purchasers an option to
purchase up to an additional $200 million aggregate principal
amount of notes to cover any over-allotments. The notes are
unsecured senior obligations of GGP Limited Partnership, and, if
certain conditions are satisfied, are exchangeable into cash,
shares of GGP common stock or a combination of cash and shares of
GGP common stock, at the option of GGP Limited Partnership. The
initial exchange rate for each $1,000 principal amount of notes
will be approximately 11.27 shares of GGP common stock,
representing an exchange price of approximately $88.72 per share,
representing an exchange premium of 35%, based on the April 10,
2007 closing price of GGP common stock of $65.72. The initial
exchange rate is subject to adjustment under certain circumstances.
The aggregate net proceeds from this offering, after initial
purchasers' discounts, are estimated to be approximately $1.52
billion. The net proceeds from the offering will be used to repay
variable rate indebtedness under our credit facility which bears a
current rate of 6.57%, as well as for general corporate purposes.
The notes will be sold to qualified institutional buyers in
reliance on Rule 144A under the Securities Act of 1933, as amended
(the "Securities Act"). The notes and any GGP common stock that may
be delivered upon exchange of the notes have not been registered
under the Securities Act or any state securities laws, and unless
so registered, may not be offered or sold in the United States
except pursuant to an exemption from the registration requirements
of the Securities Act and applicable state laws. This release shall
not constitute an offer to sell or the solicitation of an offer to
buy any of these securities, nor shall it constitute an offer,
solicitation or sale in any jurisdiction in which such offer,
solicitation or sale is unlawful. GGP is one of the largest
U.S.-based publicly traded Real Estate Investment Trusts (REIT).
GGP currently has ownership interest in, or management
responsibility for, a portfolio of over 200 regional shopping malls
in 45 states, as well as ownership in master planned community
developments and commercial office buildings. GGP�s portfolio
totals approximately 200 million square feet and includes over
24,000 retail stores nationwide. GGP is listed on the New York
Stock Exchange under the symbol GGP. For more information, please
visit the GGP website at http://www.ggp.com. Certain statements
contained herein may contain 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 indebtedness and interest rates, market
conditions, land sales in the Master Planned Communities segment,
the cost and success of development and re-development projects and
ability to successfully manage growth. Readers are referred to the
documents filed by General Growth Properties, Inc. with the SEC,
specifically the most recent report on Form 10-K, 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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