Macerich Announces Over $1 Billion of Financing Activity
July 15 2008 - 6:00AM
PR Newswire (US)
SANTA MONICA, Calif., July 15 /PRNewswire-FirstCall/ -- The
Macerich Company (NYSE:MAC) today announced the closing of five
major loan financings and a commitment on a sixth financing. The
total loan amount on all six transactions is $1.045 billion and the
five transactions that recently closed totaled $895 million and
generated excess proceeds above the prior loans of approximately
$576 million which were used to pay down the Company's line of
credit. On May 6, 2008, the Company closed on a $100 million
financing of The Mall of Victor Valley, a regional mall in
Victorville, California, at an initial rate of 4.32%. Some of the
loan proceeds paid off the former loan of approximately $51 million
with an interest rate of 5.25%. This floating rate loan has an
initial term of three years extendable to five years. On June 5,
2008, Westside Pavilion, a 740,000 square foot regional mall in Los
Angeles was refinanced with a new $175 million five year loan with
an initial interest rate of 4.45%. Some of the loan proceeds paid
off the former loan of $91.6 million with an interest rate of
6.74%. On June 13, 2008, the Company closed on a $150 million loan
on the recently opened SanTan Village regional shopping center. The
loan has an initial three year term, extendable to five years. The
initial funding was approximately $117 million at an initial
interest rate of 4.73%. Approximately $33 million of additional
proceeds will be distributed as the remaining construction costs
are incurred. Prior to this loan the asset was not encumbered by a
mortgage. On July 10, 2008, a $170 million, 6.76% seven year fixed
rate loan was placed on Fresno Fashion Fair, a super regional mall
in Fresno, California. A portion of the proceeds were used to pay
off the previous loan of $63.1 million bearing interest at 6.52%.
On July 11, 2008, the Company placed a $300 million combination
construction - permanent loan on The Oaks, a super regional mall in
Thousand Oaks, California. The initial funding was $220 million at
an interest rate of 4.29%. Approximately $50 million of additional
proceeds will be distributed upon completion of the construction
and another $30 million upon stabilization. This floating rate loan
has an initial term of three years. Additionally, on July 9, 2008,
the Company entered into a commitment for a $150 million, seven
year, 6.11% fixed interest rate loan on Broadway Plaza in Walnut
Creek, California. The loan is expected to close in September and
part of the proceeds will be used to pay off the current loan of
$59 million (with a 6.68% interest rate). Upon completion of this
financing the Company will have less than $100 million of remaining
maturities for 2008 and expected available capacity under its line
of credit of over $625 million. Macerich is a fully integrated
self-managed and self-administered real estate investment trust,
which focuses on the acquisition, leasing, management, development
and redevelopment of regional malls throughout the United States.
The Company is the sole general partner and owns an 86% ownership
interest in The Macerich Partnership, L.P. Macerich now owns
approximately 77 million square feet of gross leaseable area
consisting primarily of interests in 72 regional malls. Additional
information about Macerich can be obtained from the Company's Web
site at http://www.macerich.com/. Note: This release contains
statements that constitute forward-looking statements. Stockholders
are cautioned that any such forward-looking statements are not
guarantees of future performance and involve risks, uncertainties
and other factors that may cause actual results, performance or
achievements of the Company to vary materially from those
anticipated, expected or projected. Such factors include, among
others, general industry, economic and business conditions, which
will, among other things, affect demand for retail space or retail
goods, availability and creditworthiness of current and prospective
tenants, anchor or tenant bankruptcies, closures, mergers or
consolidations, lease rates and terms, interest rate fluctuations,
availability and cost of financing and operating expenses; adverse
changes in the real estate markets including, among other things,
competition from other companies, retail formats and technology,
risks of real estate development and redevelopment, acquisitions
and dispositions; governmental actions and initiatives (including
legislative and regulatory changes); environmental and safety
requirements; and terrorist activities which could adversely affect
all of the above factors. The reader is directed to the Company's
various filings with the Securities and Exchange Commission,
including the Annual Report on Form 10-KA for the year ended
December 31, 2007, for a discussion of such risks and
uncertainties, which discussion is incorporated herein by
reference. The Company does not intend, and undertakes no
obligation, to update any forward-looking information to reflect
events or circumstances after the date of this release or to
reflect the occurrence of unanticipated events. DATASOURCE: The
Macerich Company CONTACT: Arthur Coppola, President and Chief
Executive Officer, or Thomas E. O'Hern, Executive Vice President
and Chief Financial Officer, both of The Macerich Company,
+1-310-394-6000 Web site: http://www.macerich.com/
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