GGP readies launch of $7 billion credit facilities for Monday

By Sara Rosenberg

New York, April 17 – GGP Inc. is scheduled to hold a lender presentation at 11:30 a.m. ET on Monday to launch $7 billion of senior secured credit facilities, according to a market source.

Morgan Stanley Senior Funding Inc., Wells Fargo Securities LLC, Deutsche Bank Securities Inc., RBC Capital Markets, Bank of America Merrill Lynch, Barclays, HSBC Securities (USA) Inc., Sumitomo Mitsui Banking Corp. and TD Securities LLC are the lead banks on the deal.

The facilities consist of a $1.5 billion revolver, a $1.5 billion term loan A-1, a $2 billion term loan A-2 and a $2 billion term loan B, the source said.

Proceeds will be used to fund Brookfield Property Partners LP’s acquisition of all outstanding shares of common stock of GGP.

Under the transaction, GGP shareholders will be entitled to elect to receive, for each GGP common share, either $23.50 in cash or either one Brookfield Property unit or one share of a new Brookfield Property U.S. REIT security, subject to proration based on aggregate cash consideration of $9.25 billion.

Closing is expected early in the third quarter, subject to the approval GGP shareholders and customary conditions.

GGP is a Chicago-based owner, manager, leaser and redeveloper of high-quality retail properties. Brookfield Property is a commercial real estate company.

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