Press release from Business Wire
General Growth Properties, Inc. Completes $1.7 Billion Refinancing of Seven Malls and Increases Credit Facility to $750 Million
Wednesday, April 13, 2011
CHICAGO (Business Wire) -- General Growth Properties, Inc. (NYSE: GGP) (“GGP”) today announced the refinancing of seven shopping malls representing $1.7 billion of new mortgages ($1.4 billion is GGP's share). These seven new fixed-rate mortgages have a weighted average term of 10.3 years and generated cash proceeds in excess of in-place financing of approximately $400 million to GGP. GGP has also been able to lower the weighted average interest rate of these seven mortgages from 5.65% to 5.33%, while lengthening the term by approximately seven years over that in place. As of today, six of these properties have closed and the seventh property is anticipated to close in May 2011.
Additionally, GGP has also increased the capacity of its credit facility to $750 million, up from $720 million. These recent financings, when combined with cash on hand, increases GGP's liquidity position to over $2 billion.
“We are pleased to announce the completion of these financing transactions. These transactions mark another step towards our 2011 balance sheet goals of lengthening maturities while improving liquidity. We will continue to take advantage of our ability to refinance GGP's mortgages and the current capital markets where it is accretive to GGP's balance sheet strategy,” said Sandeep Mathrani, chief executive officer of General Growth Properties.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements. Actual results may differ materially from the results suggested by these forward-looking statements, for a number of reasons, including, but not limited to, our ability to refinance, extend, restructure or repay our remaining debt (including that of our Unconsolidated Real Estate Affiliates) with maturities in the short to intermediate term, our ability to raise capital through equity issuances, asset sales or the incurrence of new debt, retail and credit market conditions, impairments, our liquidity demands and retail and economic conditions. Readers are referred to the documents filed by General Growth Properties, Inc. with the Securities and Exchange Commission, which further identify the important risk factors that could cause actual results to differ materially from the forward-looking statements in this release. The Company disclaims any obligation to update any forward-looking statements.
General Growth Properties has ownership and management interest in 169 regional and super regional shopping malls in 43 states. The Company portfolio totals 174 million square feet of retail space. A publicly-traded real estate investment trust (REIT), GGP is listed on the New York Stock Exchange under the symbol GGP.
General Growth Properties, Inc.
David Keating, vice president of corporate communications