Glimcher Announces $80 Million of Mortgage Financings
COLUMBUS, Ohio -- October 10, 2008 -- Glimcher Realty Trust (NYSE: GRT) —
announced today that it has completed a $40 million mortgage loan financing of Morgantown Mall located in Morgantown, WV. The new loan has a term of five years comprised of an initial three-year maturity with two, one-year extension options. The loan is 50% recourse with a floating interest rate of LIBOR plus 3.50% per annum. Net proceeds from the financing along with available capacity on the Company’s credit facility will be used to pay off the existing $51 million mortgage on Morgantown Mall and Morgantown Commons. The Company is in the process of securing financing for the Morgantown Commons.
The Company also announced that it expects to close within the next several weeks on a $40 million mortgage loan financing of Northtown Mall, located in Blaine, MN. The new loan will have a term of four years comprised of an initial three-year maturity with a single one-year extension option. The loan will be 50% recourse with a floating interest rate of LIBOR plus 3.00% per annum with no principal amortization. The net proceeds from the financing will be used to pay down outstanding borrowings on the Company’s credit facility.
“As we have previously noted, the Company’s near-term debt maturities are manageable and we are pleased with the progress we are making in executing our plans to address such maturities,” stated Michael P. Glimcher, Chairman of the Board and CEO.
Excluding the Eastland Charlotte loan for which discussions with the special servicer continue, the Company has now completed the refinancing of all its remaining debt maturities for 2008. With respect to 2009 debt maturities, the Company plans to use the line of credit capacity created by the closing of the Northtown financing to address the repayment of its Grand Central Mall loan. The $46 million Grand Central Mall loan represents the Company’s most significant property debt maturity in 2009. Other property mortgage debt maturing in 2009 includes loans on the Great Mall and Tulsa Promenade. The Great Mall is currently under contract for sale with closing scheduled for mid-December of this year. The Company has already received 10% of the purchase price in the form of a non-refundable deposit from the prospective buyer. The Company also expects, if necessary, to have sufficient capacity available under its credit facility to address its $18.2 million pro-rata share of the Tulsa Promenade debt. The Company’s credit facility is scheduled to mature in December of 2009 but does have a one-year extension provision at the option of the Company. No other debt maturities occur in 2009. The Company expects to have a $315 million to $335 million outstanding balance on its credit facility as of December 31, 2008.
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