General Growth Properties to launch $3.5 billion pro-rata facility

By Sara Rosenberg

New York, Jan. 23 - General Growth Properties Inc. is scheduled to hold a bank meeting on Tuesday to launch its proposed all pro-rata $3.5 billion credit facility, according to a market source.

Wachovia and Bank of America are the lead banks on the deal, and Euro Hypo is acting as administrative agent.

The four-year facility consists of a $650 million revolver and a $2.85 billion term loan A, with both tranches talked at Libor plus 125 basis points, the source said.

The company will also be getting a $1.5 billion bridge to the commercial mortgage-backed securities market, the source continued.

Proceeds from the new deal will be used to refinance the company's existing credit facility, including taking out all of its existing institutional bank debt.

The company's existing term loan B currently contains 101 soft call protection, however, whether investors will actually get taken out at 101 by this full-out refinancing transaction still remains to be seen, the source added.

General Growth Properties is a Chicago-based regional shopping mall real estate investment trust.

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