CBL Properties Announces New $65 Million Secured Financing and Anticipated Partial Redemption of 10% Senior Secured Notes
April 26 2022 - 3:15PM
Business Wire
CBL Properties (NYSE: CBL) today announced that it has entered
into a term sheet for a new $65.0 million non-recourse loan. CBL
also announced a partial redemption of outstanding 10% Senior
Secured Notes utilizing its share of net proceeds from the new
financing and available cash.
“This new loan and subsequent partial redemption of the 10%
Notes will meaningfully strengthen our balance sheet, reduce our
cost of capital, and enhance net cash flow,” said Stephen Lebovitz,
chief executive officer, CBL Properties. “We look forward to making
additional similar announcements in the near future as we near our
goal of refinancing all outstanding 10% Notes.”
Today, the Company’s wholly owned subsidiary, CBL &
Associates Holdco II, LLC (the “Issuer”) delivered a conditional
notice of redemption to holders of its 10% Senior Secured Notes due
2029 (the “10% Notes”), pursuant to the terms of the indenture
governing the 10% Notes, to redeem $60.0 million aggregate
principal amount of 10% Notes (the “Redemption”) on May 26, 2022.
The Redemption is conditioned upon the receipt by the Issuer of net
cash proceeds from the new financing. There can be no assurances as
to when or if such condition will be satisfied and the Issuer may
waive the condition at its discretion. Following the planned
redemption, $335.0 million principal amount of 10% Notes will
remain outstanding.
The new CMBS loan will be secured by a pool of five open-air
centers owned in a 92/8 joint venture and located in Chattanooga,
TN. The open-air centers include Hamilton Crossing, Hamilton
Corner, The Terrace, The Shoppes at Hamilton Place, and Hamilton
Place - Regal. At closing the centers will be released from their
guaranty obligation under the 10% Notes.
The loan will have a ten-year term with a fixed interest rate
determined at closing and based upon an agreed upon spread plus the
greater of the 10-year swap rate or 10-year US Treasury Rate. The
rate is expected to be in the range of 5.5% - 5.75%, assuming
interest rates at closing are comparable to today’s rates. The loan
is expected to close on or around May 25th, subject to completion
of customary due diligence and documentation.
This press release does not constitute an offer to sell or
purchase, or a solicitation of an offer to sell or purchase, or the
solicitation of tenders or consents with respect to, any security.
No offer, solicitation, purchase or sale will be made in any
jurisdiction in which such an offer, solicitation or sale would be
unlawful.
About CBL Properties
Headquartered in Chattanooga, TN, CBL Properties owns and
manages a national portfolio of market-dominant properties located
in dynamic and growing communities. CBL’s owned and managed
portfolio is comprised of 95 properties totaling 59.6 million
square feet across 24 states, including 57 high-quality enclosed
malls, outlet centers and lifestyle retail centers as well as more
than 30 open-air centers and other assets. CBL seeks to
continuously strengthen its company and portfolio through active
management, aggressive leasing and profitable reinvestment in its
properties. For more information visit cblproperties.com.
Information included herein contains “forward-looking
statements” within the meaning of the federal securities laws. Such
statements are inherently subject to risks and uncertainties, many
of which cannot be predicted with accuracy and some of which might
not even be anticipated. Future events and actual events, financial
and otherwise, may differ materially from the events and results
discussed in the forward-looking statements. The reader is directed
to the Company’s various filings with the Securities and Exchange
Commission, including without limitation the Company’s Annual
Report on Form 10-K and the “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” included therein,
for a discussion of such risks and uncertainties.
CBL_Corp
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version on businesswire.com: https://www.businesswire.com/news/home/20220426005951/en/
Investor Contact: Katie Reinsmidt, Executive Vice President
& Chief Investment Officer, 423.490.8301,
Katie.Reinsmidt@cblproperties.com Media Contact: Stacey Keating,
Vice President– Corporate Communications, 423.490.8361,
Stacey.Keating@cblproperties.com
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