Macerich Renews Corporate Credit Facility

The Macerich Company (NYSE: MAC) has successfully renewed its corporate credit facility, totaling $700 million.

Rhea-AI Summary

The Macerich Company (NYSE: MAC) has successfully renewed its corporate credit facility, totaling $700 million. This facility includes a $525 million revolving credit line and a $175 million term loan, with $495 million already drawn. The interest rate is set at LIBOR + 2.75%. The renewal allows for a potential increase of the revolver up to $800 million. Additionally, nearly $1 billion of debt was repaid at closing, reflecting the company's strategy to reduce leverage over time.

Positive

• Renewal of corporate credit facility totaling $700 million.
• Included $525 million revolving line of credit and $175 million term loan.
• Interest rate set at LIBOR + 2.75%.
• Significant repayment of nearly $1 billion in debt.

Negative

• None.

Argus Session date unavailable

+1.38% session move Open Argus

Details

News Market Reaction – MAC

The recorded move for MAC in the trading session of this news was +1.38%.

Data tracked by StockTitan Argus. Session date unavailable.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

SANTA MONICA, Calif., April 14, 2021 /PRNewswire/ -- Today, the Macerich Company (NYSE: MAC, the "Company") closed on the renewal of its corporate credit facility. The $700 million facility includes both a revolving line of credit totaling $525 million and a term loan totaling $175 million. The revolver has a two-year initial term plus a one-year extension option and the term loan has a three-year term. At closing, the floating interest rate will be LIBOR + 2.75%, and $495 million will be drawn on the facility. The revolver may be expanded up to $800.0 million at any time during the term, subject to certain conditions. The facility includes security in the form of mortgages on certain previously unencumbered wholly-owned assets and pledges of the Company's equity interests in certain other assets.

At closing, the Company repaid nearly $1 billion of debt. "We are very pleased to have finalized this credit facility, which provides an important capital foundation to the Company for the next three years," said Tom O'Hern, Chief Executive Officer of Macerich. "We are committed to reducing leverage over time, and we consider the significant repayment of debt at closing of this facility to be an important step in that regard."    

About Macerich:

The Company recently posted a new investor presentation to its website at www.Macerich.com.

Macerich is a fully integrated, self-managed and self-administered real estate investment trust, which focuses on the acquisition, leasing, management, development, and redevelopment of regional malls throughout the United States.

Macerich currently owns 50 million square feet of real estate consisting primarily of interests in 46 regional shopping centers. Macerich specializes in successful retail properties in many of the country's most attractive, densely populated markets with significant presence on the West Coast, Arizona and the Metro New York to Washington, DC corridor.  A recognized leader in sustainability, Macerich has achieved the #1 GRESB ranking in the North American Retail Sector for six straight years (2015 – 2020). Additional information about Macerich can be obtained from the Company's website at www.Macerich.com.

View original content to download multimedia:http://www.prnewswire.com/news-releases/macerich-renews-corporate-credit-facility-301269152.html

SOURCE Macerich Company

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the significance of Macerich's $700 million credit facility renewal?

The $700 million credit facility renewal strengthens Macerich's financial position by providing necessary capital for the next three years.

How much debt did Macerich repay upon closing its credit facility?

Macerich repaid nearly $1 billion of debt at the closing of the credit facility.

What are the terms of Macerich's renewed credit facility?

The renewed credit facility includes a $525 million revolving line of credit and a $175 million term loan with an interest rate of LIBOR + 2.75%.

Is there an option for Macerich to increase its revolving credit line?

Yes, the revolving credit line can be expanded up to $800 million during the term, subject to certain conditions.

When did Macerich announce the renewal of its corporate credit facility?

Macerich announced the renewal of its corporate credit facility on April 14, 2021.