Thursday, CBL & Associates Properties Inc. (CBL) announced new financings of $288.1 million and a commitment for a new $85.0 million term loan. The financings and commitment covers all of CBL's remaining maturities for 2008. The company entered into a new $164.0 million, 10-year non-recourse loan with a large retirement system and Northwestern Mutual. The loan is secured by Hanes Mall in Winston-Salem, North Carolina and bears a fixed interest rate of 6.99%, and replaces a $97.6 million loan at an interest rate of 7.31%.
The company entered into a new $87.5 million three-year term loan secured by Rivergate Mall and the Village at Rivergate in Nashville, Tennessee with Aareal Capital Corp. The loan will have two, one-year extension options and will be 50% recourse with a variable interest rate of 225 basis points over LIBOR.
CBL also entered into a loan modification agreement with a life insurance company to modify and extend its existing $36.6 million loan secured by Hickory Hollow Mall and Courtyard at Hickory Hollow in Nashville, Tennessee. The loan was extended for ten years, is fully recourse and bears a fixed interest rate of 6.00%.
The company intends to use the net proceeds from these loans, combined with the loan modification to replace an existing $153.2 million loan bearing an interest rate of 6.77% secured by Rivergate Mall, The Village at Rivergate, Hickory Hollow Mall and Courtyard at Hickory Hollow.
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