Macerich closes on credit facilities for Westcor Realty acquisition

By Sara Rosenberg

New York, July 29 - The Macerich Partnership LP closed on new credit facilities to help finance its $1.475 billion acquisition of Westcor Realty LP. Deutsche Bank Securities Inc. and JP Morgan Securities Inc. were co-lead arrangers on the credit facilities.

The company obtained a $380 million interim loan with a term of up to 18 months and an average interest rate of Libor plus 325 basis points and a $250 million five-year term loan with and interest rate that can range from Libor plus 275 to 300 basis points, depending on overall leverage. Furthermore, the company replaced its $200 million line of credit with a new $425 million three-year revolver with an option to extend for one year. The interest rate on the revolver can range from Libor plus 175 to 300 basis points, depending on overall leverage, and was 4.82% at closing.

Proceeds from the interim loan and the term loan were used to help fund the acquisition. The company also assumed $733 million in existing debt and issued approximately $72 million of convertible preferred operating partnership units at a price of $36.55 per unit.

Macerich Co. is a Santa Monica, Calif. real estate investment trust that focuses on leasing, management and redevelopment of regional malls and community centers. Westcor is a Phoenix, Ariz. owner, operator and developer of regional malls and specialty retail assets.

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