PREIT Raises $289 Million
Executes on early refinancing of Lehigh Valley Mall
Shares recent Balance Sheet and Leasing Progress
PHILADELPHIA, Oct. 16, 2017 /PRNewswire/ -- PREIT (NYSE: PEI) has raised $289 million in total capital since the beginning of September, generating over $100 million in net proceeds. The Company has closed on the early refinancing of the mortgage loan on Lehigh Valley Mall generating proceeds of $37 million, at the Company's share. The new $200 million loan bears interest at 4.06% and matures in 10 years. The previous loan was set to mature in 2020 and carried an interest rate of 5.88% resulting in annual interest rate savings of $1.1 million on the previous loan amount.
| Sale of Logan Valley Mall |
$33.2 million |
| Sale of 801 Market Street Office Condominium |
30.8 million |
| Series D Preferred Share Issuance |
125.0 million |
| Refinancing Lehigh Valley Mall Mortgage |
100.0 million |
| Total Proceeds |
$289.0 million |
The Company has now satisfied all material mortgage maturities through June 2019 with the exception of one, which is currently in active discussions and completed the redemption-in-full of its $115 million Series A Preferred Shares. In addition, the underwriters of the Series D Preferred Shares exercised a $5 million overallotment option.
In addition to successfully enhancing liquidity, PREIT has opened 578,000 square feet of space since the beginning of the third quarter of 2017, including five anchor spaces, two new H&M stores and a new-to-portfolio Zara.
"PREIT continues to execute on opportunities in the capital markets to improve our liquidity position while simultaneously creating value at our properties," said Joseph F. Coradino, CEO of PREIT. "As the detoxing of our portfolio continues, the underlying strength is enhanced through improved traffic, sales and NOI."
About PREIT
PREIT (NYSE: PEI) is a publicly traded real estate investment trust that owns and manages quality properties in compelling markets. PREIT's robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in the densely-populated eastern U.S. with concentrations in the mid-Atlantic's top MSAs. Since 2012, the company has driven a transformation guided by an emphasis on portfolio quality and balance sheet strength driven by disciplined capital expenditures. Additional information is available at www.preit.com or on Twitter or LinkedIn.
CONTACT:
Heather Crowell
SVP, Corporate Communications and Investor Relations
(215) 454-1241
[email protected]
SOURCE PREIT
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