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CBL & Associates (CBL) Closes Non-Recourse Loan Financings For $64.1M Proceeds

 June 11, 2012 12:39 PM

(By Balaseshan) CBL & Associates Properties Inc. (NYSE:CBL), a self-managed, self-administered real estate investment trust (REIT), said it has closed four separate non-recourse loans totaling $202.2 million.

After consideration of the mortgage loan balances retired, the new loans generated excess proceeds of $64.1 million. CBL had paid off several of the existing mortgage loans earlier in the year using its lines of credit. Total proceeds were used to reduce outstanding balances on the company's lines of credit.

Finance Chief John Foy said the new loans are indicative of the strong demand the company is receiving in the commercial mortgage-backed securities (CMBS) market. The company is pleased to benefit from the favorable interest rate environment by lowering the average borrowing rate on these loans from 6.62% to 4.85%.

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Three separate ten-year non-recourse CMBS loans were secured by Southpark Mall in Richmond (Colonial Heights), Virginia; Jefferson Mall in Louisville, Kentucky; and Fashion Square in Saginaw, Michigan.

CBL also completed a ten-year non-recourse loan with an insurance company secured by CBL Center 1 and 2 in Chattanooga, Tennessee. The four loans carry a weighted average fixed interest rate of 4.85%.

Year-to-date, CBL has completed more than $416.0 million in mortgage financings, generating excess proceeds of about 143.0 million, substantially addressing CBL's mortgage maturities in 2012.

[Related -Analysts' Rating And Target Changes: ARW, CBL, CRM, FB, FWLT, HSP]

The company owns, develops, acquires, leases, manages, and operates regional shopping malls, open-air centers, community centers and office properties. CBL's properties are located in 26 states, but are primarily in the southeastern and midwestern United States. It is the 100% owner of two REIT subsidiaries, CBL Holdings I Inc. and CBL Holdings II Inc.

CBL is trading down 0.83% at $17.85 on Monday. The stock has been trading between $10.41 and $19.50 for the past 52 weeks.

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