General Growth Properties Announces Buy-Back of $487.9 Million in Common Stock
May 05 2011 - 7:00AM
Business Wire
General Growth Properties, Inc. (NYSE: GGP) (“GGP” or the
“Company”) today announced it has purchased for cancellation
approximately 30.6 million shares of its common stock at a purchase
price of $15.95 per share, investing a total of $487.9 million. The
acquisition was completed through private purchases.
The Company also announced its intent to repay $339 million of
corporate recourse debt prior to June 30, 2011. The debt carries an
average interest rate of 5.9% and has an average maturity term of
1.8 years. Following the repayment of these facilities, GGP will be
debt-free at the parent-company level, with the exception of $206
million of trust-preferred securities due in 2036.
“Since the beginning of 2011, we have generated liquidity in
excess of $2 billion from the sale of non-core assets, non-recourse
asset financings and a new credit line. Looking forward, we expect
to retire in excess of $2.5 billion of subsidiary and asset level
debt by the end of 2013,” said Sandeep Mathrani, chief executive
officer of General Growth Properties. “The best use of our capital
is to balance between reducing near-term debt maturities and
investing in higher return long-term investments that will continue
to build net asset value in the business. Given the current value
of our stock, the quality of our assets and the outlook for our
cash-flow generation, we can think of no better long-term
investment than in our own company.”
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
GGP is one of the nation’s largest shopping center owners. GGP
has ownership and management interest in 169 regional and super
regional shopping malls in 43 states. The company portfolio totals
172 million square feet of 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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