CBL & Associates Properties, Inc. (NYSE: CBL) today 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 ten-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 ten-year non-recourse loan with an insurance company secured by CBL Center I and II in Chattanooga, TN. The four loans carry a weighted average fixed interest rate of 4.85%.
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% to 4.85%.”
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.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 160 properties, including 90 regional malls/open-air centers. The properties are located in 27 states and total 87.3 million square feet including 3.6 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. 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" incorporated by reference therein, for a discussion of such risks and uncertainties.