Rouse Properties Completes Amendment to Credit Facility
Company Release – 10/01/2012
–Interest Costs Reduced, Financial Flexibility Enhanced
NEW YORK–(BUSINESS WIRE)– Rouse Properties, Inc. (NYSE: RSE) today announced the amendment of its $375 million senior secured credit facility. Upon the effective date of the amendment, borrowings under the facility will be priced at LIBOR plus 450 basis points with no LIBOR floor. Previously, the facility had been priced at LIBOR plus 500 basis points, subject to a LIBOR floor of 1.0%. This facility currently has an outstanding balance of $325.1 million, and an undrawn $50 million revolver. The term loan and the revolving credit facility mature in January, 2015.
“This amended credit facility reduces our interest costs by approximately $4.0 million per year at today’s interest rates. This is not only an indication of the support of our bank group, but reflects the leasing and operational progress we have achieved as we continue to implement our strategy to realize the inherent value within our portfolio,“ said Andrew Silberfein, president and chief executive officer of Rouse Properties
The Company’s bank group is led by Wells Fargo, as Administrative Agent, and RBC Capital Markets, as Syndication Agent and U.S. Bank as documentation agent.
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 and the Company’s operating expectations for the full 2012 calendar year. 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, 2011 and other documents filed by the Company with the Securities and Exchange Commission.
About Rouse Properties, Inc.
Rouse Properties 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 31 malls in 19 states encompassing approximately 22 million square feet of gross leasable area. For more information, visit rouseproperties.com.
Rouse Properties, Inc.
Investor Relations, 212-608-5108
Source: Rouse Properties, Inc.