General Growth Gets $1.5B Refi on 16 Malls
- May 02, 2013
General Growth Properties Inc., of Chicago; U.S. Bank, of Minneapolis; and RBC Capital Markets, of Toronto, recently closed on a $1.5 billion secured term loan refinancing 16 of GGP’s properties in the United States, U.S. Bank announced Wednesday.
U.S. Bank acted as joint-lead arranger, joint bookrunner and administrative agent on the transaction, while RBC Capital Markets served as joint-lead arranger (left), joint bookrunner and syndication agent. A U.S. Bank spokesperson told Commercial Property Executive that the other 11 co-lenders in the facility are predominantly commercial banking institutions, along with two investment banks and one insurance company.
The 16 GGP properties are Columbiana Centre (S.C.), Eastridge (Wyo.), Fallbrook Center (Calif.), Grand Teton Mall (Idaho), Mayfair (Wis.), Mondawmin Mall (Md.), North Town Mall (Wash.), Oakwood Center (La.), Oakwood Mall (Wis.), Pine Ridge Mall (Idaho), Pioneer Place (Ore.), Red Cliffs Mall (Utah), River Hills Mall (Minn.), The Shops at Fallen Timbers (Ohio), Sooner Mall (Okla.), Southwest Plaza (Colo.).
Joe Hoesley, vice chairman of Commercial Real Estate at U.S. Bank, said in the release that U.S. Bank and its partners were able to raise more than $1.8 billion in commitments for this credit facility, “demonstrating the strong appetite lenders have for quality commercial real estate assets.”
The loan was originated out of U.S. Bank’s commercial real estate office in Chicago.
The $1.5 billion loan is secured by cross-collateralized mortgages on 16 properties with a weighted-average interest rate of LIBOR plus 2.50 percednt and a term-to-maturity of 3.0 years (with two one-year options), according to a report from GGP. The prior loans secured by the properties had a weighted-average interest rate of 3.98 percet and a term to maturity of 3.3 years. The transaction generated approximately $180 million in net proceeds.
In the three-month period ending March 31, GGP’s FFO increased 13.6 percent to $252 million, or $0.25 per diluted share, from $222 million, or $0.22 per diluted share, in the prior year period. EBITDA increased 5.7 percent to $496 million from $469 million in the prior year period.
Net operating income for the company’s portfolio of U.S. regional malls increased 3.7 percent to $513 million from $495 million in the prior year period.
Net loss attributable to common stockholders was $14 million, or $0.01 loss per diluted share, versus a net loss of $198 million, or $0.21 loss per diluted share, in the prior year period.
Tenant sales per square foot on a trailing 12-month basis, mall leased percentage and initial rental rates for executed leases commencing in 2013 on a suite-to-suite basis all increased.