10A — February 10 - 23, 2017 — Financial Digest — M id A tlantic
Real Estate Journal
www.marejournal.com
F inancial D igest
ersey City, NJ — Mack-Cali Realty Corp. announced recent financ- The company closes on senior unsecured credit facilities totaling $925 million Mack-cali announces recent financing activity J credit facilities consist of: JPMorgan Chase Bank, N.A. as administrative agent;
outstanding bonds scheduled to mature in August of 2019 and repaid a series of loans totaling approximately $200 million of high rate mortgage debt. The following is a summary of these recent financing trans- actions: The company closed on senior unsecured credit facilities total- ing $925 million with a group of 13 lenders, with Wells Fargo Securities, LLC; J.P. Morgan Chase Bank, N.A. and Merrill Lynch, Pierce, Fenner & Smith Inc. as joint lead arrangers and joint bookrunners; and Capital One, National Association and U.S. Bank National Association as joint lead arrangers.
The credit facilities are com- prised of a renewal and exten- sion of the company’s existing $600 million unsecured revolv- ing facility and a new $325 million unsecured delayed-draw term loan. The $600 million credit facility carries an interest rate equal to LIBOR plus 120 basis points and a facility fee of 20 basis points. The facility has a term of four years with two six-month extension options. The new $325 million delayed- draw term loan can be drawn over time within 12 months of closing with no requirement to be drawn in full. The loan carries an interest rate equal to LIBOR plus 140 basis points
and a ticking fee of 25 basis points on any undrawn balance during the first 12 months after closing. The term loan matures in three years with two one-year extension options. The interest rate on the revolving credit facility and new term loan and the facility fee on the revolving credit facility are subject to adjustment, on a sliding scale, based upon the company's un- secured debt ratings, or at the company’s option, based on a defined leverage ratio. The credit facilities also con- tain accordion features provid- ing for expansion of the facili- ties up to a total of $1.2 billion. The lending group for the
Wells Fargo Bank, N.A. and Bank of America, N.A. as syn- dication agents; Capital One, National As- sociation; U.S. Bank, National Association; Citibank, N.A.; PNC Bank, National Association and BMO Harris Bank, N.A., all as docu- mentation agents, and The Bank of New York Mellon as Managing Agent; Other participants in the credit facilities are Comerica Bank; TD Bank, N.A.; Associ- ated Bank, National Associa- tion and Fifth Third Bank. Also this month, the company closed on a $100 million mort- gage loan, secured by Alterra at Overlook Ridge, its 722 unit multi-family community located in Revere, MA. The mortgage loan carries a fixed interest rate of 3.75% per annum and is interest only for its seven year term. In December, the company redeemed for cash all $135 million outstanding principal amount of its 7.75% Notes due in August 2019. The Notes were redeemed on December 29, 2016. The redemption price for the Notes, including a make- whole premium, was 115.3% of the principal amount of the Notes, plus any accrued and unpaid interest. Also during the fourth quar- ter of 2016, the company repaid mortgage debt on nine assets aggregating $200 million that carried interest rates rang- ing from 6.3% to 11.3%, The company disposed of two of the assets and seven became unencumbered. Pro forma, with the execution of these financing activities, the company’s $2.5 billion total debt now carries a weighted average interest rate of 3.9%. Additionally, with remaining maturities of up to 12 years, the weighted average maturity of its indebtedness is now 4.4 years. "The completion of these fi- nancings clearly demonstrates the capital markets' strong commitment to Mack-Cali and will provide affordable capital to continue the Company's business plans" said Tony Krug , Mack-Cali CFO. Added Michael DeMarco , Mack-Cali president “We appreciate the confidence our lending partners have in our strategy and look forward to a continued profit- able partnership.” n
ing activities. In a series of transac- t i o n s , t h e company: re- financed and extended its $600 million unsecured re- volving credit
Michael DeMarco
facility; entered into a $325 million delayed draw unsecured term loan; placed a $100 million mortgage on one of its multi- family communities located in Revere, MA; redeemed the remaining $135 million of its
The lending team dedicated to making it happen. ~ Specializing in multi-family lending, loans up to $6 million ~
Sean Howland Vice President and Loan Officer
Monte Ehrenkranz Vice President of Business Development
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