CBL & Associates Properties, Inc. (NYSE: CBL) today announced that it closed the extension and modification of its $560 million credit facility, maintaining 100% lending capacity. The facility was scheduled to mature in August 2011 (assuming exercise of the remaining extension option) and has been extended to April 2014.
The extended facility is currently partially secured and will be converted to a fully secured facility over the new term. The conversion includes drawing available amounts under the facility to retire property-specific mortgage loans as they mature. The unencumbered properties will then be used as collateral to secure the credit facility, officials said.
Commenting on the closing, John N. Foy, chief financial officer, said, "Early in the year we outlined a plan to address our major debt maturities. We are pleased to be able to announce the next major milestone in executing this plan. To-date we have refinanced or extended over $1.4 billion in maturing debt including the $560 million new secured facility and the $525 million secured facility. We appreciate the continuing confidence of our lending relationships."
The extension and modification agreement calls for amounts outstanding under the $560 million new secured facility to bear interest at an annual rate equal to one-month, three-month, or six-month LIBOR (at the Company's option) plus a spread that increases over the facility's term, commencing with a spread of 75 to 120 basis points (depending upon CBL's leverage ratio) through August 2010, a spread of 145 to 190 basis points through August 2011 and increasing thereafter to 325 to 425 basis points until maturity, with LIBOR subject to a minimum of 1.50%, beginning Dec. 31, 2009.
CBL previously announced that it closed the extension and modification of its $525 million secured line of credit, maintaining 100% lending capacity. The facility was extended from February 2010 to February 2012, with an option to extend the maturity for one additional year to February 2013 (subject to continued compliance with the terms of the facility).