General Growth Properties sets Oct. 4 meeting for senior managing agent tier

By Sara Rosenberg

New York, Sept. 29 - General Growth Properties has scheduled its senior managing agent and managing agent tier bank meeting for Oct. 4, according to a market source, with the retail launch still expected to take place in mid-October.

Previously, it was known that the SMA meeting would be an early-October event but specific timing was unavailable up until now.

The $9.75 billion credit facility consists of a $250 million three-year revolver, a $3.9 billion three-year term loan A talked at Libor plus 225 to 250 basis points, a $2 billion four-year term loan B talked at Libor plus 250 to 275 basis points and a $3.6 billion bridge loan that will be taken out by CMBS deal.

Lehman Brothers, Credit Suisse First Boston, Wachovia and Bank of America are joint lead arrangers and joint bookrunners on the deal, with Lehman listed on the left.

Proceeds, along with $500 million of new equity, will be used to help fund the acquisition of The Rouse Co. for $7.2 billion, including the assumption of about $5.4 billion of Rouse debt, and to redo $2 billion of General Growth's unsecured credit.

The transaction is expected to close in the fourth quarter of 2004.

Post closing, General Growth, a Chicago-based shopping mall owner, will have about $23 billion of debt, or approximately 71% of total pro forma capitalization of $32.5 billion based upon the current stock price. Estimated interest coverage is about 1.6x for the first full year after closing, assuming the transaction closes in the fourth quarter.

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