CBL Properties Completes Partial Redemption of 10% Senior Secured Notes Utilizing Proceeds From New $65 Million Secured Non-Recourse Financing
May 26 2022 - 12:30PM
Business Wire
CBL Properties (NYSE: CBL) today announced that it has completed
a partial redemption of outstanding 10% Senior Secured Notes. The
Notes were redeemed utilizing CBL’s share of net proceeds from the
previously announced new $65.0 million non-recourse loan.
“We are thrilled to close this new 10-year fixed-rate loan and
complete the partial notes redemption,” said Stephen Lebovitz,
chief executive officer, CBL Properties. “The 62% loan-to-value,
which is based on approximately a 7% cap rate, is an excellent
third-party validation of the significant value underlying our
asset base. We continue to make additional progress on our goal of
redeeming the $335 million of remaining 10% Notes and look forward
to making an announcement in the near term.”
Today, the Company’s wholly owned subsidiary, CBL &
Associates Holdco II, LLC (the “Issuer”) completed the redemption
of $60.0 million aggregate principal amount of its 10% Senior
Secure Notes due 2029 (the “10% Notes”), pursuant to the terms of
the indenture governing the 10% Notes. Following the redemption,
$335.0 million principal amount of 10% Notes will remain
outstanding.
The new $65 million CMBS non-recourse loan is secured by a pool
of 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 and The Shoppes at Hamilton Place
(including the Regal theater). The loan has a ten-year term with a
fixed interest rate of 5.85%, interest only for three years and
principal reduction based on a 30-year amortization schedule
thereafter.
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/20220526005589/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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