CBL & Associates Properties, Inc. (NYSE: CBL) today announced that it closed the modification of its three major secured credit facilities with aggregate capacity of $1.15 billion including its $520 million secured credit facility, its $525 million secured credit facility and its $105 million secured credit facility. Outstanding balances on all three lines of credit will no longer be subject to a LIBOR floor and will bear interest at an annual rate equal to LIBOR plus a range of 200 to 300 basis points, depending on the Company's leverage ratio. The reduction in interest rates represents a more than 200 basis point improvement in average borrowing cost for the facilities.
The maturity of the $520 million facility remains August 2011, with an option to extend the facility to April 2014 (subject to continued compliance with the terms of the facility). The maturity of the $525 million facility was extended by two years, from February 2012 to February 2014, with an option to extend the maturity for one additional year to February 2015 (subject to continued compliance with the terms of the facility). The maturity of the $105 million facility was extended for one year to June 2013.
Commenting on the closing, John N. Foy, Chief Financial Officer, said, "We are pleased to extend our major lines of credit and significantly reduce our borrowing costs under the credit facilities. Our bank group continues to demonstrate confidence in our business and the results we have achieved and we appreciate their ongoing commitment."
Wells Fargo Bank NA is the administrative agent under the $520 million facility and the $525 million facility. First Tennessee Bank NA is the administrative agent under the $105 million facility.