GGP Announces Redemption of 6.75% Notes Due 2015 and $1.5B of Secured Financings in First Quarter
General Growth Properties (NYSE: GGP) today announced that its subsidiary, GGP-TRC, LLC, is calling its 6.75% Notes due November 9, 2015 (the "Notes") for redemption on May 1, 2013 (CUSIP 779278AA8). As of the close of business on April 1, 2013, there was $608,688,000 of Notes outstanding. The full amount of the Notes will be redeemed in cash, including an early redemption fee of approximately $20.5 million, plus accrued and unpaid interest up to, but excluding, the redemption date.
From the redemption date forward, the Notes will no longer be deemed outstanding, interest will no longer accrue and holders will have no rights other than the right to receive the redemption price, without interest, upon surrender of the Notes. Payment of the redemption price will be made only upon presentation and surrender of the Notes to Wilmington Trust, National Association, the trustee and paying agent, during its business hours at the address specified in the Notice of Redemption. The Notice of Redemption was distributed to holders of the Notes on April 1, 2013.
As previously announced, approximately $92 million of 5.375% unsecured notes were redeemed on February 14, 2013, prior to their stated maturity date of November 26, 2013. In connection with the redemption, the Company incurred an early redemption fee of approximately $3.5 million.
In addition, during the first quarter, the Company completed approximately $1.5 billion of secured financings, lowering the average interest rate approximately 150 basis points from 5.09% to 3.61%. The financings generated $680 million of net proceeds after repayment of existing mortgages and had maturities of between 10 and 12 years. The financing transactions are as follows:
Prior Loan Terms New Loan Terms Mall Location Financing Date Total Balance Proportionate Balance Interest Rate Maturity Date Total Balance Proportionate Balance Interest Rate Maturity Date Notes
(in millions) (in millions) Pecanland Mall Monroe, LA March 2013 $50 $50 4.28% January 2014 $90 $90 3.88% March 2023 The Shoppes at River Crossing Macon, GA March 2013 38 - 4.50% May 2013 77 39 3.75% March 2023 (a) Crossroads Center St. Cloud, MN March 2013 77 77 4.73% January 2014 108 108 3.25% April 2023 Altamonte Mall Orlando, FL February 2013 150 75 5.05% March 2013 160 80 3.72% February 2025 (b) Pembroke Lakes Mall Pembroke, FL February 2013 119 119 4.94% April 2013 260 260 3.56% March 2025 Valley Plaza Mall Bakersfield, CA February 2013 86 86 3.90% January 2016 240 240 3.75% March 2025 Willowbrook Mall Wayne, NJ March 2013 146 146 6.82% June 2016 360 360 3.55% March 2025 Mall St. Matthews Louisville, KY March 2013 133 133 4.81% January 2014 188 188 3.58% April 2025
Grand Totals $799 $686 5.09% $1,483 $1,365 3.61% (c)
(a) The Shoppes at River Crossing is a 50% owned joint venture. The prior loan was entirely secured by GGP's joint venture partner's interest in the property, thus, GGP's share of the prior loan balance was zero. (b) Altamone Mall is a 50% owned joint venture. (c) Interest rate total is calculated based on total balance.
Forward-Looking Statements The forward-looking statements contained in this news release are subject to certain risks and uncertainties including, without limitation, the risks described under the heading "Risk Factors" in our Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") and available on our website at www.ggp.com. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
About GGP General Growth Properties, Inc. is a fully integrated, self-managed and self-administered real estate investment trust focused exclusively on owning, managing, leasing, and redeveloping high-quality retail properties throughout the United States. GGP's portfolio is comprised of 125 regional malls comprising 124 million square feet of gross leasable area. GGP is headquartered in Chicago, Illinois, and publicly traded on the NYSE under the symbol GGP. For further information please visit www.ggp.com.
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