Valley View Center had been in receivership since mid-2010, it was sold in April and concurrent with that sale the debt and all accrued interest was forgiven. We booked an extinguishment of debt mean of $104 million.
In May, Prescott Gateway was conveyed to the lender in a deed in lieu transaction and a $16 million gain on extinguishment of debt was recognized.
Those gains on debt extinguishment on Valley View and Prescott are not included in AFFO.
Looking at our balance sheet, our debt-to-market-Cap at quarter end was 40%. Net-debt-to-EBITDA was 7.3 times and our interest coverage ratio in the quarter was 2.6 times.It continues to be a great financing market but extremely low rates and a significant amount of capacity. We are taking advantage of this market. We began 2012 with an average debt maturity of 3.2 years. As a result of the refinancing and debt reduction year-to-date, as of June 30 th we have extended the debt maturities schedule to almost four years. By year-end we are expecting the average debt maturity schedule to closer to five years, the average debt maturity. In addition, since the loans we’re putting in place are long-term fixed rate loans, the excess proceeds are being used to pay down our line of credit. And by year-end, our floating rate debt will only be about 20% of our total debt. And I would expect that to continue to go down in 2012 as we move forward with our 2013 debt maturities. Some of the recent activity includes a $200 million loan on Chandler. That was a seven year deal at a fixed rate of 3.77%. That replaces the prior loan which had a coupon of $5.48%. We also closed on a $220 million loan on the Oaks. That had been a floating rate loan before, the new loan is a fixed rate 10-year deal at 4.1% interest rate.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV