CBL will redeem $355 million in senior secured notes

One of the nation’s top mall owners announced that it will redeem senior secured notes to be backed by 13 of its open-air centers and 91 high-demand outparcels.

"This new financing is a major milestone in the strengthening of CBL and our balance sheet," said Stephen Lebovitz, CEO CBL Properties, which owns 95 properties in 24 states--the bulk of them traditional enclosed malls.

"It is the latest in a number of recent financings to validate the tremendous value of our company and our portfolio," said Lebovitz, who added that the 10-year fixed-rate loan had a 62% loan-to-value based on approximately a 7% cap rate.

CBL open-air centers that will be backing the loan include The Landing at Arbor Place in Atlanta; The Courtyard at Hickory Hollow in Nashville; Harford Mall Annex in Bel Aire, Md.; Sunrise Commons in Brownsville, Texas, and Gunbarrel Pointe in Chattanooga.

“This is an excellent third-party validation of the significant value underlying our asset base,” Lebovitz said.