CBL Properties Completes Full Redemption of 10% Senior Secured Notes Utilizing Proceeds From a New $360 Million Non-Recourse Secured Financing
June 07 2022 - 4:15PM
Business Wire
Simplifies Balance Sheet; Lowers Interest
Expense
Creates Strong, Stable Pool of Unencumbered
Assets
CBL Properties (NYSE: CBL) today announced that its wholly owned
subsidiary, CBL & Associates Holdco II, LLC, had completed the
redemption of all $335.0 million outstanding 10% Senior Secured
Notes due 2029 (the “10% Notes”). The redemption was funded
utilizing proceeds from a new $360.0 million non-recourse loan
secured by a pool of high-quality outparcels and open-air centers.
Upon the full redemption of the 10% Notes, the recourse guaranty
was eliminated. CBL’s share of unencumbered NOI is an estimated $75
million.
“The full redemption of the 10% Notes just seven months
following emergence is a major achievement,” said Stephen Lebovitz,
chief executive officer, CBL Properties. “Our capital structure is
clean and straightforward, with debt comprised of substantially
non-recourse property level loans as well as a limited recourse
secured term loan.”
Lebovitz added, “The new $360.0 million loan is the latest in a
number of recent financings to validate the tremendous value of our
company and our portfolio. The favorable terms of the new loan,
including proceeds funded at a 62.5% loan-to-value ratio based on a
blended 6.2% cap rate, clearly demonstrate the intrinsic value of
our asset base.”
The new loan, provided by Beal Bank USA, has an initial
five-year term with one two-year extension option available to the
Company, subject to certain conditions. The loan bears a floating
interest rate based on 30-day SOFR plus 4.10%. CBL has fixed the
interest rate for one-half, or $180 million principal amount of the
$360 million loan, at a fixed rate of 6.95% for a term of three
years. The balance will remain at a floating rate, which will allow
for selective hedging at CBL’s option. Based on the current yield
curve, the average interest rate for the first three years is
estimated in the range of 6.75% - 6.95%.
The loan is secured by a pool of 90 outparcels located across
CBL’s portfolio and 13 open-air centers. The open-air centers
include Alamance Crossing West in Burlington, NC, Coolspring
Crossing and The Courtyard at Hickory Hollow in Nashville, TN,
Frontier Square in Cheyenne, WY, Gunbarrel Pointe in Chattanooga,
TN, Harford Mall Annex in Bel Aire, MD, The Plaza at Fayette in
Lexington, KY, Sunrise Commons in Brownsville, TX, The Shoppes at
St. Clair in Fairview Heights, IL, The Landing at Arbor Place in
Atlanta, GA, West Towne Crossing and West Towne District in
Madison, WI, and Westgate Crossing in Spartanburg, SC.
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.
Moelis & Company LLC acted as Exclusive Placement Agent to
CBL on the transaction.
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/20220607006035/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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