GGP launches $2 billion term loan B at Libor plus 225-250 bps

By Sara Rosenberg

New York, April 23 – GGP Inc. launched on Monday its $2 billion seven-year covenant-light term loan B with price talk of Libor plus 225 basis points to 250 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan B has 101 soft call protection for six months and amortization of 1% per annum, the source said.

The company’s $7 billion of senior secured credit facilities also include a $1.5 billion revolver, a $1.5 billion term loan A-1 and a $2 billion term loan A-2.

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 joint lead arrangers and bookrunners on the deal. Wells Fargo is the agent.

Commitments are due on May 4, the source added.

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 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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