CBL gets $510 million in commitments for extension of unsecured loan

By Sara Rosenberg

New York, June 8 - CBL & Associates Properties Inc. has received about $510 million in commitments from lenders towards the extension and modification of its $560 million unsecured line of credit, according to a news release.

Additional lending commitments are still being sought after from existing lenders and from other institutions.

The commitments provide that the facility will be converted over an 18-month period into a secured facility, and that the maturity of the facility will be extended to April 2014 from August 2011.

The company will draw down amounts available under the unsecured facility to retire at maturity a number of non-recourse, property-specific mortgages that mature in 2009, 2010 and 2011. The assets will then be pledged as collateral to secure the extended facility.

Pricing on the facility will range, based on leverage, from Libor plus 75 basis points to 120 bps through August 2010, Libor plus 145 bps to 190 bps through August 2011, and Libor plus 325 bps to 425 bps through maturity.

There is a 1.5% Libor floor.

Wells Fargo Bank is the administrative agent on the deal.

In addition, the company said that it has received about $420 million in commitments towards the extension of its $525 million secured credit facility and is currently in the process of seeking more commitments.

The commitments reflect an extension of the facility to February 2012 from February 2010, with an option to extend the maturity for one additional year.

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

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