Rouse Properties Closes New $510 Million Corporate Credit Facility

Company Release – 11/25/2013

– Consists of $260 Million Term Loan and $250 Million Revolving Credit Line –

– Financial Flexibility Enhanced, Cost of Capital Reduced and Term Extended –

NEW YORK–(BUSINESS WIRE)– Rouse Properties, Inc. (the “Company” or “Rouse”) (NYSE:RSE) a national owner of regional enclosed malls, today announced the closing of a new $510 million corporate credit facility, which replaced the Company’s existing $337.9 million credit facility which had been scheduled to mature in January, 2015. The new facility consists of a $260 million term loan with a five year term, and a $250 million revolving line of credit with a four year initial term and a one year extension option.

Andrew Silberfein, president and chief executive officer of Rouse Properties stated, “With the closing of this facility we have taken another meaningful step towards supporting the future growth of our company and improving our financial flexibility and balance sheet. The increase in our bank revolver capacity, significant reduction in the cost of this capital and the long-term nature of this commitment reflects not only the operational and leasing progress we have achieved to date, but highlights the improvement in Rouse’s financial strength as we continue to build value for our shareholders.“

Borrowings on the new facility will bear interest at grid pricing of LIBOR plus 185 to 300 basis points based on corporate leverage, versus the company’s previous facility, which carried interest at LIBOR plus 450 basis points. The Company’s revolving line of credit capacity will increase by $100 million and the $100 million subordinated revolving line of credit maturing in June, 2015 will be eliminated. Proceeds from the increased term loan component will be used to retire a $70.9 million non-recourse mortgage loan on Southland Mall in California prior to its maturity date in January, 2014.

The Company’s bank group is led by Joint Lead Arrangers Keybank Capital Markets, Inc. (Key Bank, N.A. as Administrative Agent), Merrill Lynch, Pierce Fenner & Smith Incorporated (Bank of America, N.A. as Co-Syndication Agent), and RBC Capital Markets (The Royal Bank of Canada as Co-Syndication Agent). Barclays Bank PLC and U.S. Bank National Association acted as Co-Documentation Agents, and Credit Suisse AG, Fifth Third Bank, Cayman Islands Branch, and RBS Citizens, N.A. joined the credit facility as lenders.

Forward Looking Statement

Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These forward-looking statements may include statements related to the Company’s ability to outperform the ongoing recovery of the Retail and REIT industry and the markets in which the Company’s mall properties are located, the Company’s ability to generate internal and external growth, the Company’s ability to identify and complete the acquisition of properties in new markets, the Company’s ability to complete redevelopment projects, the Company’s ability to increase margins, including Net Operating Income. For a description of factors that may cause the Company’s actual results or performance to differ from its forward-looking statements, please review the information under the heading “Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 and other documents filed by the Company with the Securities and Exchange Commission.

About Rouse Properties

Rouse is a publicly traded real estate investment trust headquartered in New York City and founded on a legacy of innovation and creativity. Among the country’s largest publicly traded regional mall owners, the Company’s geographically diverse portfolio spans the United States from coast to coast, and includes 32 malls in 19 states encompassing over 21.5 million square feet of space. For more information,

Rouse Properties, Inc.
Investor Relations, 212-608-5108

Source: Rouse Properties, Inc.