CBL & Associates Properties, Inc. Monday announced that it has closed four separate non-recourse loans totaling $202.2 million. After consideration of the mortgage loan balances retired, the new loans generated excess proceeds of $64.1 million. CBL had paid off several of the existing mortgage loans earlier in the year using its lines of credit. Total proceeds were used to reduce outstanding balances on the company’s lines of credit.
Three separate 10-year non-recourse CMBS loans were secured by Southpark Mall in Richmond (Colonial Heights), Va.; Jefferson Mall in Louisville, Ky.; and Fashion Square in Saginaw, Mi. CBL also completed a 10-year non-recourse loan with an insurance company secured by CBL Center I and II in Chattanooga. The four loans carry a weighted average fixed interest rate of 4.85 percent.
Commenting on the financings, John Foy, vice chairman and chief financial officer, said, “The new loans are indicative of the strong demand we are receiving in the CMBS market. We are pleased to benefit from the favorable interest rate environment by reducing the average borrowing rate on these loans from 6.62 percent to 4.85 percent.”
Year-to-date, CBL has completed more than $416.0 million in mortgage financings, generating excess proceeds of approximately 143.0 million, substantially addressing CBL’s mortgage maturities in 2012.