CBL Properties announced that it has completed a series of financing transactions totaling more than $600 million, refinancing its existing $634 million term loan and improving the company’s balance sheet while increasing expected annual free cash flow.
The Chattanooga, Tennessee-based real estate investment trust closed a $425 million non-recourse financing secured primarily by a portfolio of regional malls. The company also expects to close shortly on a $176 million floating-rate bank loan secured mainly by open-air lifestyle centers. Together, the transactions refinance the existing term loan ahead of its November 2027 maturity.
The new $425 million loan carries a five-year term maturing in 2031 and a fixed interest rate of 7.40%. It is secured by a pool of mall properties including Cherryvale Mall in Rockford, Illinois; Frontier Mall in Cheyenne, Wyoming; Hanes Mall in Winston-Salem, North Carolina; Kirkwood Mall in Bismarck, North Dakota; Mall Del Norte in Laredo, Texas; Post Oak Mall in College Station, Texas; Richland Mall in Waco, Texas; Sunrise Mall in Brownsville, Texas; Turtle Creek Mall in Hattiesburg, Mississippi; Valley View Mall in Roanoke, Virginia; West Towne Mall in Madison, Wisconsin; and Westmoreland Mall and Westmoreland Crossing in Greensburg, Pennsylvania.
As part of the refinancing, Northgate Mall in Chattanooga will become unencumbered, giving the company additional flexibility for potential redevelopment initiatives.
The planned $176 million floating-rate bank facility will be secured by Mayfaire Town Center in Wilmington, North Carolina; Pearland Town Center in Pearland, Texas; Southaven Town Center in Southaven, Mississippi; and East Towne Mall in Madison, Wisconsin. The loan will carry a five-year term with two one-year extension options and will be interest-only with a rate of SOFR plus 410 basis points.
CBL said the refinancing will reduce overall debt by $33 million and extend the company’s debt maturity profile. The move is also expected to improve annual free cash flow by more than $30 million due to more favorable amortization structures under the new loans.
Following the transactions, the company updated its 2026 amortization guidance to a range of $58 million to $63 million for the year.
CBL Properties owns and manages a portfolio of 88 retail properties totaling 55.6 million square feet across 23 states, including enclosed malls, outlet centers, and open-air retail centers.
KEY QUOTE:
“This transformative financing strengthens our balance sheet, reduces overall debt by $33 million, extends our maturity profile, and provides meaningful flexibility as we execute our long-term strategy. The strong lender response and favorable terms reflect increasing confidence in our portfolio and our disciplined operating strategy. With a significantly improved free cash flow profile due to the more conventional amortization structure under the new loans, CBL is well-positioned to pursue value-enhancing investments and deliver additional returns to shareholders.”
Ben Jaenicke, EVP – Chief Financial Officer, CBL Properties
