Glimcher Announces Mortgage Financing for Grand Central Mall

−Financing on Polaris Lifestyle Center expected to close during the First Quarter of 2009 —

COLUMBUS, Ohio—February 5, 2009—Glimcher Realty Trust (NYSE: GRT) announced that it recently closed on a $25 million mortgage loan on Grand Central Mall located in Vienna, West Virginia.   For a period of up to six months after the initial funding, the loan amount can be increased up to $47 million through additional commitments from lenders.    The $25 million of funds were applied to the repayment of the existing $46 million loan on the mall with the balance of the existing mortgage paid using funds from the company’s line of credit.  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 with an interest rate floor of 5.50% per annum.

Shortly after closing on the new loan, the company sold an outparcel at Grand Central Mall for approximately $5 million. The proceeds from this sale were used to repay outstanding borrowings on the company’s line of credit.  The company also announced that it expects to close during the first quarter of 2009 on a $24 million mortgage loan financing of the company’s recently completed lifestyle addition at Polaris Fashion Place (“Polaris”) in Columbus, Ohio.  Proceeds from the Polaris financing will be used to repay outstanding borrowings on the company’s line of credit.

Click here for the PDF Version.