Taubman Centers closes new $475 million unsecured term loan

By Jennifer Chiou

New York, Nov. 13 - Taubman Centers, Inc. entered into a new $475 million unsecured term loan with an accordion feature that could increase the capacity to up to $600 million.

JPMorgan Chase Bank, NA is the bookrunner, administrative agent and joint lead arranger. PNC Bank NA acted as syndication agent and joint lead arranger.

Wells Fargo Bank, NA was the documentation agent.

According to a news release, the loan will mature in February 2019.

Borrowings bear interest depending on the company's total leverage ratio. At closing, the rate is Libor plus 135 basis points.

Partial proceeds were used to pay off the company's $305 million loan on the Beverly Center in Los Angeles, which had a rate of 5.28%. Taubman also used $165 million to pay down its lines of credit.

Separately, the company said it has entered into a forward interest rate swap agreement to reduce its exposure to rate fluctuations. The swap will effectively fix the interest rate on the $475 million loan to a rate of 3% beginning on Jan. 2 through its maturity date.

The Bloomfield Hills, Mich.-based borrower is a real estate investment trust.

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