CBL increases and extends two credit facilities
Nov 07, 2012 (Menafn - M2 EQUITYBITES via COMTEX) --US malls and shopping centres owner and developer CBL & Associates Properties Inc CBL has agreed to modify and extend its two major credit facilities, the company stated on Tuesday.
The new loan commitments increase the aggregate capacity by USD155.0m to USD1.2bn.
Under the agreements CBL will convert both facilities from secured to unsecured, increasing the capacity of each facility to USD600m, extending the terms and reducing the average borrowing rate by 60 basis points. The outstanding balances on the two facilities will bear interest at an annual rate equal to LIBOR plus a range of 155 to 210 basis points, depending on the company's leverage ratio.
As part of the new agreements the maturities of both facilities will be extended by three years, with the first USD600m facility maturing in November 2015 and with an option to extend the maturity for one additional year. The maturity of the second USD600m facility will be extended to November 2016 with an option to extend the maturity for one additional year to November 2017.
Lead arrangers under the facilities are Wells Fargo Securities LLC and U.S. Bank NA.
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