Glimcher repays bank debt with asset sale proceeds

By Sara Rosenberg

New York, Aug. 6 - Glimcher Realty Trust reduced borrowings by about $15. 2 million under its line of credit and repaid a $28.2 million bridge loan maturing on Jan. 5, 2005 with a portion of the proceeds from asset sales.

The company sold 23 properties for a purchase price of about $91.9 million to Bromont Investments and Dolgen Ventures, according to a company news release.

Furthermore, the company expects to complete the sale of two additional centers for $11.2 million to Bromont and Dolgan as soon as loan assumption approvals are completed. The additional proceeds from the sale are expected to be applied to reduce borrowings on the line of credit as well, the release added.

Besides repaying loans, the company repaid a $38 million mortgage on River Valley Mall due on Dec. 31, a $5 million mortgage due on March 1, 2005 and a $2.9 million mortgage due on July 11, 2007.

"This sale is an important step in the execution of our plan to focus on regional mall assets," said Michael P. Glimcher, president, in the release. "The paydown of debt as a result of this transaction will improve our ratio of debt to market capitalization, reduce our exposure to variable rate debt and provide an opportunity to pursue acquisition and development opportunities."

Glimcher is a Columbus, Ohio, real estate investment trust that focuses on regional and super-regional malls and community shopping centers.

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