CBL Properties announced it has closed a $176 million floating-rate, non-recourse loan, marking the final step in its refinancing of a previously outstanding $634 million secured term loan.
The new financing, provided by Beal Bank USA, is secured primarily by a portfolio of open-air and lifestyle retail centers, including properties in North Carolina, Texas, Mississippi, and Wisconsin. The loan carries a five-year term with two one-year extension options and features an interest-only structure at a floating rate tied to SOFR plus 410 basis points.
This transaction follows the company’s earlier $425 million non-recourse financing, which was backed by enclosed mall assets. Together, the two transactions fully refinance the prior term loan, extending its maturity to 2031.
CBL said the refinancing is expected to improve its financial position, including an estimated annual increase in free cash flow of more than $30 million and a reduction in total debt of over $33 million. Following the closing, the company’s cash balance is projected to exceed $291 million.
The company, headquartered in Chattanooga, Tennessee, owns and manages a portfolio of 88 retail properties totaling approximately 55.6 million square feet across 23 states, including enclosed malls, outlet centers, and open-air retail centers.
KEY QUOTE:
“The closing of this $176 million loan completes a transformative refinancing strategy that significantly improves our balance sheet and long-term financial outlook. The strong lender engagement, attractive terms, and interest-only structure underscore the quality of our assets and our disciplined execution. With the completion of this loan, we have extended our maturity profile and improved the flexibility of our capital structure as we continue executing our long-term strategy.”
Ben Jaenicke, EVP And Chief Financial Officer, CBL Properties
