CBL & Associates to reduce revolver debt with note offering proceeds

By Sarah Lizee

Olympia, Wash., Aug. 29 – CBL & Associates LP plans to use proceeds from a senior note offering to reduce amounts outstanding under its unsecured revolving credit facilities, according to a 424B5 filing with the Securities and Exchange Commission.

The notes will be an add on to the company’s outstanding 5.95% senior notes due 2026.

CBL has $1.1 billion of borrowing capacity under its three revolving credit facilities.

As of June 30, the company had $181.07 million outstanding on the revolvers and $0.15 million of letters of credit.

Borrowings under the revolving credit facilities bear interest at one-month LIBOR plus a spread of 87.5 to 155 basis points based on the company’s credit ratings. The facilities had a weighted-average interest rate of 2.25% per annum as of June 30.

The company will also use the proceeds for general business purposes.

CBL is a Chattanooga, Tenn.-based owner and developer of malls and shopping centers.

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