PHILADELPHIA—PREIT has completed the refinancing of the mortgage loan secured by Woodland Mall, and extended and modified the terms of the existing mortgage loan secured by Viewmont Mall. The LIBOR-based loans total $187.0 million and carry a fixed weighted average interest rate of 3.16 percent after giving effect to interest rate swaps. The new debt instruments will result in future annual interest expense savings of approximately $3.7 million.
The revised terms for Viewmont Mall include the ability to borrow up to $12.5 million of additional funds when new tenants open in the existing Sears store. As previously reported by GlobeSt.com, PREIT has arranged for DICK'S Sporting Goods and Field & Stream to jointly lease the Sears space.
“We are thrilled to continue to strengthen our balance sheet with this announced satisfaction of all debt maturities until June of 2017 at improved interest rates,” says Joseph F. Coradino, CEO of PREIT. “Consistent with our balance sheet objectives, following these transactions we will recognize significant interest rate expense savings having reduced our average interest rate to 3.94 percent and extend the average time to maturity of our mortgage loans to six years.”
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