Mack-Cali Realty obtains three-year $350 million unsecured term loan

By Wendy Van Sickle

Columbus, Ohio, Jan. 7 – Mack-Cali Realty, LP entered into a three-year $350 million unsecured term loan facility agreement on Thursday, according to an 8-K filed with the Securities and Exchange Commission.

The term loan is expandable up to $400 million and has two one-year extension options, subject to a 15 basis point fee each.

Initial interest is Libor plus 140 bps with the applicable margin ranging from 90 bps to 185 bps, depending, at the borrower’s option, on its debt rating or its leverage ratio. Mack-Cali entered into interest rate swap arrangements with the lenders to fix Libor at 1.455% throughout the life of the loan.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities, LLC acted as joint lead arrangers and joint bookrunners; Bank of America, NA as administrative agent; JPMorgan Chase Bank, NA, Wells Fargo Bank, NA and Capital One, NA as syndication agents; and U.S. Bank, NA as documentation agent.

Mack-Cali plans to use the proceeds of the loan to repay $200 million principal of its 5.8% notes at maturity on Jan. 15, to repay borrowings under its $600 million unsecured revolving credit facility and for general corporate purposes and working capital.

The self-administered, self-managed real estate investment trust is based in Edison, N.J.

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