CHATTANOOGA, Tenn.--(BUSINESS WIRE)--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|
|Imperial Valley Mall|
|Layton Hills Mall|
|Mayfaire Town Center|
|Pearland Town Center & Office|
|Post Oak Mall|
|Turtle Creek 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.