A non-recourse loan is debt where the lender’s only option for repayment is to seize the specific collateral pledged for the loan and cannot pursue the borrower’s other assets or income if the collateral’s sale doesn’t cover the debt. For investors, this matters because it limits the lender’s recovery in a default, which can increase the risk to equity holders and affect valuations—think of it like a loan secured only by a single item, similar to a mortgage that lets the lender take the house but not the borrower’s other belongings.
cmbs loanfinancial
A CMBS loan is a commercial mortgage made to a business or landlord that is bundled with many other mortgages and sold to investors as a security. Think of it like a big mortgage split into many small slices that investors buy; the building owner’s payments determine how much investors receive. Investors care because the property’s income and value affect interest and principal payments, and problems like tenant loss or default can reduce returns.
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CHATTANOOGA, Tenn.--(BUSINESS WIRE)--
CBL Properties (NYSE:CBL) today announced that it had closed on a $43.0 million non-recourse loan secured by Northwoods Mall in N. Charleston, SC. The new five-year loan bears a fixed interest rate of 9.1%. Proceeds from the loan, as well as approximately $7.5 million of existing escrows, were used to retire the existing $46.8 million loan secured by the property, which was scheduled to mature this month. Under the prior loan, cash flows have been swept by the lender since April 2021.
“The successful closing of this new CMBS loan for Northwoods Mall demonstrates our ability to access attractive capital and reinforces the strong lender confidence in our middle-market mall portfolio,” said Ben Jaenicke, CBL’s EVP - Chief Financial Officer. “By extending debt maturities and unlocking over $3.0 million of previously restricted cash flow, this transaction further strengthens our balance sheet and enhances our ability to create long-term value for our investors.”
Headquartered in Chattanooga, TN, CBL Properties owns and manages a national portfolio of market-dominant properties located in dynamic and growing communities. CBL’s owned and managed portfolio is comprised of 88 properties totaling 55.6 million square feet across 23 states, including 56 high-quality enclosed malls, outlet centers and lifestyle retail centers as well as more than 25 open-air centers and other assets. CBL seeks to continuously strengthen its company and portfolio through active management, aggressive leasing and profitable reinvestment in its properties. For more information visit cblproperties.com.
Information included herein contains “forward-looking statements” within the meaning of the federal securities laws. Such statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual events, financial and otherwise, may differ materially from the events and results discussed in the forward-looking statements. The reader is directed to the Company’s various filings with the Securities and Exchange Commission, including without limitation the Company’s Annual Report on Form 10-K and the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included therein, for a discussion of such risks and uncertainties.
