CBL & Associates Properties, Inc. (NYSE:CBL) announced today that it has
closed on $314.45 million of new secured non-recourse financings at a
weighted average interest rate of 4.07%, representing a 178 basis point
improvement compared with the interest rate borne by the maturing loans.
CBL entered into a new $276.0 million ($138.0 million at CBL’s share)
loan secured by Oak Park Mall, its super-regional shopping center in
Kansas City (Overland Park), KS, owned in a 50/50 joint venture. The new
10-year non-recourse loan bears interest at a fixed interest rate of
3.97%. Proceeds from the loan were primarily used to repay the $275.7
million maturing loan, which bore an interest rate of 5.85%.
CBL also entered into a new $38.45 million ($19.23 million at CBL’s
share) loan secured by the Outlet Shoppes at Gettysburg, its owned
outlet center located in Gettysburg, PA, owned in a 50/50 joint venture.
The new 10-year non-recourse loan bears interest at a fixed interest
rate of 4.804%. Proceeds from the loan were used to repay a $38.25
million maturing loan, which bore an interest rate of 5.87%.
“We are pleased to close these new financings, which are consistent with
our strategy of maintaining secured debt on joint venture properties as
well as mitigating risk by fixing interest rates long-term,” said
Farzana Mitchell, CBL’s chief financial officer. “The significant
improvements in the stated interest rates from these financings will
result in nearly $2.8 million annually in interest savings for CBL.”
About CBL & Associates Properties, Inc.
CBL is one of the largest and most active owners and developers of malls
and shopping centers in the United States. CBL owns, holds interests in
or manages 147 properties, including 90 regional malls/open-air centers.
The properties are located in 30 states and total 84.0 million square
feet including 6.5 million square feet of non-owned shopping centers
managed for third parties. Headquartered in Chattanooga, TN, CBL has
regional offices in Boston (Waltham), MA, Dallas (Irving), TX, and St.
Louis, MO. Additional information can be found at cblproperties.com.
Forward-Looking Statements
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.
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