CBL & Associates Properties, Inc. on Monday announced that it had closed the extension and modification of two unsecured term loans due to mature in 2018.
“We are extremely pleased to complete the extension and modification of these term loans,” said Stephen Lebovitz, president and chief executive officer. “With the significant negativity in the media toward the industry, this demonstrates the ongoing confidence and support by lenders in CBL and our strategy of owning dominant retail real estate.”
“Over the past several years, we have actively pursued balance sheet goals that included extending our maturity schedule as well as reducing our total debt,” said Farzana Khaleel, CBL’s chief financial officer. “We are reinforcing our liquidity by striking an appropriate balance between secured debt, unsecured term loans, lines of credit and public bonds. We are pleased to have the continued confidence and support of our lead banks, Wells Fargo and First Tennessee, as well as that of more than 15 other participating banks.”
Two unsecured term loans expiring in 2018 were modified and extended. The first, with a balance of $400 million, was increased to a balance of $490 million until July 2018, when it will be reduced to $300 million for the remainder of its term. New borrowings under this term loan were used to reduce outstanding balances on the company’s unsecured lines of credit. The new term loan has an initial maturity date of July 2020 with two, one-year extension options (the second option is at the lenders’ sole discretion), for a final maturity of July 2022. The term loan bears an interest rate of 150 basis points over LIBOR, based on CBL’s current investment grade rating of BBB-/Baa3/BBB-. Wells Fargo Bank National Association served as administrative agent; Citizens Bank, N.A. served as the syndication agent; and PNC Bank, National Association and U.S. Bank National Association served as documentation agents. Wells Fargo Securities, LLC, Citizens Bank, N.A., PNC Capital Markets LLC and U.S. Bank National Association served as joint lead arrangers and joint Bbokrunners.
The second unsecured term loan, which currently has a balance of $50 million and was due to mature in February 2018, was modified to a new $45 million term loan. The new loan has an initial maturity date of June 2021 with an additional one-year extension option available at CBL’s discretion, for a final maturity of June 2022. The term loan bears interest at a rate of 165 basis points over LIBOR. First Tennessee Bank NA served as administrative agent.