General Growth Properties Inc. (GGP) has announced the refinancing of five shopping malls representing $743 million of new mortgages. The new fixed-rate mortgages have a weighted average term of 9.2 years and generated cash proceeds in excess of in-place financing of approximately $180 million to GGP.
GGP has also been able to lower the weighted average interest rate of the five mortgages from 6.29% to 5.40%, while lengthening the term by approximately five years over the previous loans' terms.
The company used $139 million of the excess proceeds to pay down mortgage loans on four assets with a weighted average interest rate of 7.31% and a weighted average term of 3.1 years.
"We continue to execute on our goal of lengthening maturities, reducing our carrying cost and improving our capital structure," says Sandeep Mathrani, GGP's CEO.
