GGP Finances $1.5 Billion of Property-Level Debt Interest Rate Decreases From 5.58% to 3.88%
CHICAGO, Sept. 5, 2012 /PRNewswire/ -- General Growth Properties, Inc. (NYSE: GGP) ("GGP" or the "Company") today announced $1.5 billion of property-level financings. The new loans have a weighted average interest rate and term of 3.88% and nine years, respectively, as compared to a rate of 5.58% and a remaining term-to-maturity of less than one year. The transactions generated approximately $137 million of net proceeds after repayment of existing mortgage notes. Information regarding each financing is provided below:
| Prior Loan Terms |
New Loan Terms |
||||||||||
| Mall |
Location |
Closing Date |
Balance |
Balance at GGP Share |
Interest Rate(a) |
Maturity Date |
Balance |
Balance at GGP Share |
Interest Rate(a) |
Maturity Date |
Note |
| (in millions) |
(in millions) |
||||||||||
| Glendale Galleria |
Glendale, CA |
September 2012 |
$355 |
$178 |
4.93% |
October 2012 |
$320 |
$160 |
2.73% |
October 2017 |
(b) |
| The Mall in Columbia |
Columbia, MD |
September 2012 |
400 |
400 |
5.83% |
October 2012 |
350 |
350 |
3.95% |
September 2020 |
|
| Clackamas Town Center |
Happy Valley, OR |
September 2012 |
200 |
100 |
6.05% |
October 2012 |
216 |
108 |
4.18% |
October 2022 |
|
| Rogue Valley Mall |
Medford, OR |
September 2012 |
25 |
25 |
7.85% |
July 2014 |
55 |
55 |
4.50% |
October 2022 |
|
| The Oaks Mall |
Gainesville, FL |
September 2012 |
102 |
102 |
5.74% |
December 2012 |
139 |
139 |
4.55% |
October 2022 |
|
| Westroads Mall |
Omaha, NE |
September 2012 |
89 |
89 |
5.74% |
December 2012 |
157 |
157 |
4.55% |
October 2022 |
|
| Stonebriar Centre |
Frisco, TX |
August 2012 |
155 |
78 |
5.23% |
December 2012 |
280 |
140 |
4.05% |
August 2024 |
|
| Grand Totals |
$1,326 |
$972 |
5.58% |
$1,517 |
$1,109 |
3.88% |
|||||
| Notes: |
|||||||||||
| (a) Interest rates are based on total debt balances. |
|||||||||||
| (b) Interest rate based on 30-day LIBOR plus 250 basis points. Rate shown in table was in effect at closing on September 4, 2012. Maturity date includes two, successive one-year options. |
|||||||||||
| Payments of interest only are required during the first three years and 3% of principal balance during the extension periods. |
|||||||||||
On a year-to-date basis, the Company has completed approximately $5.9 billion ($5.2 billion at share) of property-level financings generating net proceeds of approximately $664 million. As a result of these transactions, the average interest rate decreased 130 basis points from 5.63% to 4.33%. The Company has no further property-level debt maturing in 2012.
In addition, the Company will retire $349.5 million of corporate unsecured debt on September 15, 2012 with cash on hand. The debt is related to The Rouse Company, LLC's 1995 Indenture.
ABOUT GGP
General Growth Properties is a fully integrated, self-managed and self-administered real estate investment trust focused on owning, managing, leasing, and redeveloping regional malls throughout the United States and Brazil. The Company currently owns, or has an interest in, 149 regional shopping malls comprising approximately 141 million square feet of gross leasable area. GGP is headquartered in Chicago, Illinois, and publicly traded on the NYSE under the symbol GGP. For further information please visit the GGP website at www.ggp.com.
| Contact Information: |
Kevin Berry, Vice President of Investor Relations |
| (312) 960-5529 |
SOURCE General Growth Properties
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