Macerich to get $900 million of bank debt, draw $200 million from existing loan for Wilmorite acquisition

By Sara Rosenberg

New York, Dec. 23 - The Macerich Partnership LP will be getting $900 million of bank debt and drawing down $200 million from its existing line of credit to help fund the acquisition of Wilmorite Properties Inc. and Wilmorite Holdings LP for about $2.333 billion, company officials said during a conference call Thursday.

The new bank debt consists of a $600 million five-year unsecured term loan with an interest rate of Libor plus 225 basis points and a $300 million 11/2-year interim loan with an initial interest rate of Libor plus 175 basis points.

The $2.333 billion acquisition price includes the assumption of about $882 million of existing debt at an average interest rate of 6.43% and the issuance of convertible preferred units and common units totaling an estimated $320 million.

After completion of the acquisition, which is anticipated for March, total debt will be approximately $6.1 billion and the interest coverage ratio will be about 2.1-to-1.00, officials added in the call.

Deutsche Bank Securities Inc. acted as financial adviser to Macerich and will be involved in the new loan financing as well, a market source said.

Macerich is a Santa Monica, Calif., real estate investment trust, which focuses on malls.

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