CBL Properties Announces Closing of New $1.185 Billion Secured Credit Facility
January 30 2019 - 5:45PM
Business Wire
New Term Loan and Line of Credit Mature in
July 2023
CBL Properties (NYSE:CBL) today announced that it had closed on
a new $1.185 billion senior secured facility (the “Facility”),
which includes a fully-funded $500 million term loan (the “Term
Loan”) and a revolving line of credit (the “Line of Credit”) with
total borrowing capacity of $685 million.
“We are pleased to close the new bank facility, which has been a
top priority for us,” said Stephen Lebovitz, chief executive
officer. “This successful transaction underscores the confidence
that the lending community and our bank group have in CBL and our
business. We appreciate their partnership and strong support as we
execute our strategy and position CBL for a strong future.”
The new Facility matures in July 2023 and bears a floating
interest rate of 225 basis points over LIBOR. The $500 million Term
Loan balance will be reduced by $35 million per year, paid in
quarterly installments. The Facility replaces all of the Company’s
prior unsecured bank facilities, which totaled $1.795 billion
including three unsecured term loans totaling $695 million and
three unsecured revolving lines of credit with aggregate capacity
of $1.1 billion (October 2020 maturity). At closing, the Company
utilized its new Line of Credit to reduce the principal amount of
term loans by $195 million. After this utilization, the new Line of
Credit had an outstanding balance of $419.8 million.
“We have accomplished a number of important goals with this
closing,” said Farzana Khaleel, executive vice president - chief
financial officer. “First, we have removed near-term financing
risk, with no unsecured debt maturities until December 2023. This
significant lengthening of our maturity schedule provides us with a
clear runway to execute our business plan of redeveloping former
department stores and transforming our properties into suburban
town centers. Second, we have meaningfully enhanced our liquidity
and financial flexibility, particularly when coupled with the
increased free cash flow created through our dividend adjustment.
Finally, the new facility is simplified and right-sized, removing
inflexible covenants and reducing the cost expended for unused and
unneeded excess capacity.”
Khaleel added, “We were deliberate in selecting properties to
secure the new facility to ensure the remaining unencumbered
portfolio provides strong and stable cash flows as well as
significant value to support the covenants for our senior unsecured
notes.”
The Facility is secured by the following properties:
Tier 1
Tier 2 Associated
Centers Mall del Norte CherryVale Mall
Layton Hills Convenience Center Sunrise Mall
East Towne Mall Layton
Hills Plaza West Towne Mall Frontier Mall
Westmoreland Crossing
Hanes Mall
Imperial Valley Mall
Kirkwood Mall
Layton Hills Mall
Mayfaire Town Center
Northgate Mall
Pearland
Town Center & Office
Post Oak Mall
Richland Mall
Turtle Creek Mall
Westmoreland Mall
The Facility contains customary provisions upon which the
collateral may be released. The agreement for the Facility also
contains certain financial covenants. These covenants are defined
and computed on the same basis as the covenants required under the
Company’s senior unsecured notes.
Wells Fargo Bank, National Association served as Administrative
Agent. Wells Fargo Securities, LLC, U.S. Bank National Association,
PNC Capital Markets LLC, Citizens Bank, N.A., JPMorgan Chase Bank,
N.A. and Regions Capital Markets served as Joint Lead
Arrangers.
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 portfolio is comprised of
114 properties totaling 71.9 million square feet across 26 states,
including 73 high-quality enclosed, outlet and open-air retail
centers and 12 properties managed for third parties. CBL
continuously strengthens 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190130005869/en/
Investor Contact:Katie ReinsmidtEVP & Chief Investment
Officer423.490.8301Katie.Reinsmidt@cblproperties.com
CBL and Associates Prope... (NYSE:CBL)
Historical Stock Chart
From Mar 2024 to Apr 2024
CBL and Associates Prope... (NYSE:CBL)
Historical Stock Chart
From Apr 2023 to Apr 2024