FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
 
Skip Navigation LinksHome / News / Read News

Print

Rouse Properties Closes New $510MM With KeyBank, Others

November 26, 2013, 07:49 AM
Filed Under: Real Estate

Rouse Properties, Inc., a national owner of regional enclosed malls, today announced the closing of a new $510 million corporate credit facility, which replaced the Company's existing $337.9 million credit facility which had been scheduled to mature in January, 2015. The new facility consists of a $260 million term loan with a five year term, and a $250 million revolving line of credit with a four year initial term and a one year extension option.

The Company's bank group is led by Joint Lead Arrangers Keybank Capital Markets, Inc. (Key Bank, N.A. as Administrative Agent), Merrill Lynch, Pierce Fenner & Smith Incorporated (Bank of America, N.A. as Co-Syndication Agent), and RBC Capital Markets (The Royal Bank of Canada as Co-Syndication Agent). Barclays Bank PLC and U.S. Bank National Association acted as Co-Documentation Agents, and Credit Suisse AG, Fifth Third Bank, Cayman Islands Branch, and RBS Citizens, N.A. joined the credit facility as lenders.

Andrew Silberfein, president and chief executive officer of Rouse Properties stated, "With the closing of this facility we have taken another meaningful step towards supporting the future growth of our company and improving our financial flexibility and balance sheet. The increase in our bank revolver capacity, significant reduction in the cost of this capital and the long-term nature of this commitment reflects not only the operational and leasing progress we have achieved to date, but highlights the improvement in Rouse's financial strength as we continue to build value for our shareholders."

Borrowings on the new facility will bear interest at grid pricing of LIBOR plus 185 to 300 basis points based on corporate leverage, versus the company's previous facility, which carried interest at LIBOR plus 450 basis points. The Company's revolving line of credit capacity will increase by $100 million and the $100 million subordinated revolving line of credit maturing in June, 2015 will be eliminated. Proceeds from the increased term loan component will be used to retire a $70.9 million non-recourse mortgage loan on Southland Mall in California prior to its maturity date in January, 2014.

Rouse is a publicly traded real estate investment trust headquartered in New York City and founded on a legacy of innovation and creativity. Among the country's largest publicly traded regional mall owners, the Company's geographically diverse portfolio spans the United States from coast to coast, and includes 32 malls in 19 states encompassing over 21.5 million square feet of space.







Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.