What is interesting here is the length of these extensions. Nine years at a lowers rate is great. I total $GGP has taken its maturity schedule from 2.4 to 9.1 years and lowered the rate near 20%.
CHICAGO, Oct. 17, 2011 /PRNewswire/ — General Growth Properties, Inc. (NYSE: GGP) (“GGP”) today announced the refinancing of four shopping malls representing $966 million of new mortgages. These four new fixed-rate mortgages have a weighted average term of 9.1 years and a weighted average interest rate of 4.63%, as compared to the 5.66% rate on the prior maturing loans. After adjusting for GGP’s ownership interest, the Company’s pro-rata share of the new four non-recourse mortgages totals $483 million.
The four newly refinanced malls have the following terms:
- Natick Mall (Natick, MA—Boston):
- $450 million at 4.60% due 2019
- Galleria at Tyler (Riverside, CA—Los Angeles):
- $200 million at 5.05% due 2023
- First Colony Mall (Sugar Land, TX—Houston):
- $185 million at 4.50% due 2019
- Northbrook Court (Northbrook, IL—Chicago):
- $131 million at 4.25% due 2021
Year-to-date, GGP has completed nearly $3.9 billion ($3.1 billion at GGP’s pro-rata share) of new property level non-recourse financings with a weighted average term of 9.9 years and an interest rate of 5.1%. These mortgages successfully conclude GGP’s 2011 financing plan and replace $3.2 billion ($2.5 billion at GGP’s pro-rata share) that had a weighted average term of 2.4 years and an interest rate of 5.81%.
“At the start of 2011, one of GGP’s stated goals was to strengthen the Company’s balance sheet and liquidity while also reducing interest rates and extending the average debt maturity profile,” said Sandeep Mathrani, chief executive officer of General Growth Properties. “We have accomplished our 2011 goals and are now focused on 2012 financing opportunities.”