GGP FINANCES $3.1 BILLION OF PROPERTY-LEVEL DEBT IN SECOND QUARTER
INTEREST RATE DECREASES FROM 5.24% TO 4.20%
CHICAGO, July 2, 2012 /PRNewswire/ -- General Growth Properties, Inc. (NYSE:GGP) ("GGP") today announced $3.1 billion ($2.7 billion at share) of property-level financings during the second quarter 2012. The new mortgages have a weighted average interest rate and term of 4.20% and nine years, respectively, as compared to a rate of 5.24% and a remaining term-to-maturity of 3.9 years. In addition, the financings eliminated $640 million of recourse to GGP and eliminated the cross collateral provision between Fashion Show and The Grand Canal Shoppes/The Shoppes at The Palazzo. The transactions generated $329 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 |
Balance |
Balance @ Share |
Rate |
Maturity Date |
Balance |
Balance @ Share |
Rate |
Maturity Date |
| Provo Towne Centre |
Provo, UT |
$52 |
$39 |
5.75% |
June 2012 |
$42 |
$32 |
4.53% |
June 2017 |
| The Grand Canal Shoppes and The Shoppes at The Palazzo (a) |
Las Vegas, NV |
607 |
607 |
4.17% (a) |
May 2014/2017 |
625 |
625 |
4.24% (a) |
June 2019 |
| Oakbrook Center |
Oakbrook, IL |
199 |
95 |
5.12% |
October 2012 |
425 |
203 |
3.66% |
July 2020 |
| Ala Moana Center |
Honolulu, HI |
1,293 |
1,293 |
5.59% |
June 2018 |
1,400 |
1,400 |
4.23% |
April 2022 |
| Harborplace & The Gallery |
Baltimore, MD |
61 |
61 |
7.89% |
June 2014 |
82 |
82 |
5.24% |
May 2022 |
| The Streets at Southpoint |
Durham, NC |
228 |
215 |
5.36% |
April 2012 |
260 |
245 |
4.36% |
May 2022 |
| Spokane Valley Mall |
Spokane Valley, WA |
52 |
39 |
5.75% |
June 2012 |
63 |
47 |
4.65% |
June 2022 |
| Florence Mall |
Florence, KY |
90 |
64 |
4.95% |
September 2012 |
90 |
45 |
4.15% |
June 2022 |
| Greenwood Mall |
Bowling Green, KY |
- |
- |
- |
- |
63 |
63 |
4.19% |
July 2022 |
| $2,582 |
$2,413 |
5.24% |
$3,050 |
$2,742 |
4.20% |
||||
| (a) The prior loans for The Grand Canal Shoppes and The Shoppes at The Palazzo bore interest at 4.78% fixed and LIBOR + 300 basis points, respectively. The prior loan interest rate of 4.17% shown above represents a blended rate of the two loans. The new loan bears interest at a fixed rate of 4.24%. |
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As previously disclosed, GGP obtained a $1.0 billion corporate line of credit. The new facility has an uncommitted accordion feature for a total facility of up to $1.25 billion and a term of four years. The pricing of the facility is currently set at LIBOR plus 250 basis points and is determined by GGP's leverage level. In connection with the new facility, GGP terminated the $750 million corporate line of credit.
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, 150 regional shopping malls comprising approximately 141.7 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, Inc.
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