General Growth $400 million DIP loan priced at Libor plus 1,200 bps

By Sara Rosenberg

New York, May 14 - General Growth Properties Inc.'s $400 million debtor-in-possession term loan is priced at Libor plus 1,200 basis points with a 1.5% Libor floor, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

UBS is the agent on the deal.

Approval for the DIP was obtained from the U.S Bankruptcy Court for the Southern District of New York on May 13.

A group of pre-bankruptcy creditors are providing the loan, which is expected to close on Friday.

Proceeds will be used to refinance pre-bankruptcy secured debt and to provide additional liquidity during the Chapter 11 process.

Subject to certain conditions, the company will have the right to elect to repay all or a portion of the DIP term loan by issuing common stock to the lenders or three-year, prepayable at any time debt to the lenders that would have terms substantially similar to those of the DIP loan.

General Growth is a Chicago-based real estate investment trust that owns regional shopping malls, master planned community developments and commercial office buildings.

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