CBL & Associates to redeem $60 million 10% notes due 2029

By William Gullotti

Buffalo, N.Y., April 26 – CBL & Associates Properties, Inc. said its wholly owned subsidiary, CBL & Associates Holdco II, LLC, issued a conditional redemption notice for $60 million of its $395 million outstanding 10% senior secured notes, according to an 8-K filing with the Securities and Exchange Commission.

The May 26 redemption is conditioned upon CBL obtaining new financing, which will be included with available cash to fund the redemption.

After the redemption, $335 million of the 10% notes will be outstanding.

According to the attached press release, the new financing comes in the form of a new $65 million non-recourse loan.

The loan will have a 10-year term, bearing fixed interest to be determined at closing. The rate will be based on an agreed upon spread plus the greater of the 10-year swap rate or the 10-year Treasury rate and is expected to fall between 5.5% to 5.75%.

Closing is expected May 25.

CBL is a Chattanooga, Tenn.-based real estate investment trust.

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