CBL & Associates to pay down revolver debt using new issue proceeds

By Susanna Moon

Chicago, Dec. 6 – CBL & Associates LP plans to repay debt under its unsecured revolving credit facilities using proceeds from a new notes issue, according to a 424B5 filing with the Securities and Exchange Commission.

CBL plans to price fixed-rate senior notes due 2026, with proceeds also slated for general business purposes, the filing noted.

Interest on the revolving loans is one-month Libor plus a spread of 87.5 basis points to 155 bps based on the company’s credit ratings. As of Sept. 30, the rate was one-month Libor plus 120 bps with a facility fee of 25 bps.

The annual facility fee ranges from 12.5 bps to 30 bps.

As of Sept. 30, the company had a $500 million Wells Fargo facility A due October 2019, $100 million First Tennessee facility due October 2019 and $500 million Wells Fargo facility B due October 2020.

The three unsecured credit facilities had a weighted-average interest rate of 1.72% per year as of Sept. 30.

CBL is a Chattanooga, Tenn.-based owner and developer of malls and shopping centers.

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