General Growth Properties, Inc. Completes $1.7 Billion Refinancing of Seven Malls and Increases Credit Facility to $750 Million
April 13 2011 - 8:37PM
Business Wire
General Growth Properties, Inc. (NYSE: GGP) (“GGP”) today
announced the refinancing of seven shopping malls representing $1.7
billion of new mortgages ($1.4 billion is GGP’s share). These seven
new fixed-rate mortgages have a weighted average term of 10.3 years
and generated cash proceeds in excess of in-place financing of
approximately $400 million to GGP. GGP has also been able to lower
the weighted average interest rate of these seven mortgages from
5.65% to 5.33%, while lengthening the term by approximately seven
years over that in place. As of today, six of these properties have
closed and the seventh property is anticipated to close in May
2011.
Additionally, GGP has also increased the capacity of its credit
facility to $750 million, up from $720 million. These recent
financings, when combined with cash on hand, increases GGP’s
liquidity position to over $2 billion.
“We are pleased to announce the completion of these financing
transactions. These transactions mark another step towards our 2011
balance sheet goals of lengthening maturities while improving
liquidity. We will continue to take advantage of our ability to
refinance GGP’s mortgages and the current capital markets where it
is accretive to GGP’s balance sheet strategy,” said Sandeep
Mathrani, chief executive officer of General Growth Properties.
FORWARD LOOKING STATEMENTS
This press 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, our ability to refinance, extend, restructure or
repay our remaining debt (including that of our Unconsolidated Real
Estate Affiliates) with maturities in the short to intermediate
term, our ability to raise capital through equity issuances, asset
sales or the incurrence of new debt, retail and credit market
conditions, impairments, our liquidity demands and retail and
economic conditions. Readers are referred to the documents filed by
General Growth Properties, Inc. with the Securities and Exchange
Commission, which further identify the important risk factors that
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.
ABOUT GGP
General Growth Properties has ownership and management interest
in 169 regional and super regional shopping malls in 43 states. The
Company portfolio totals 174 million square feet of retail space. A
publicly-traded real estate investment trust (REIT), GGP is listed
on the New York Stock Exchange under the symbol GGP.
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