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Mills Gets $2B-Plus in Financing

ARLINGTON, VA-The troubled shopping-center REIT receives $2.23 billion from Goldman Sachs to pay off debt and help run the company. Vornado Realty Trust, the Westfield Group and other large mall owners have expressed interest in potentially acquiring the firm.

By Ian Ritter | Updated on May 04, 2006

(To read more on the debt and equity markets, click here.)

ARLINGTON, VA-Goldman Sachs Mortgage Co. is providing the Mills Corp. with up to $2.23 billion in financing–most of which will be used to pay off portions of the retail REIT’s debt. About $385 million will go toward “working capital requirements and general corporate purposes,” according to a company statement.

The company has been exploring a sale and is under investigation by the SEC for accounting flaws. Mills, the owner of 42 shopping centers in North America and Europe, is restating its financials from 2000 through last year after its third-quarter NOI and FFO dropped due to the failure to collect rents, charges on projects under construction and other factors.

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