Mack-Cali Realty Corp. closed on $925 million of senior unsecured credit facilities.
The facilities comprise the refinancing and extension of a $600 million unsecured revolving facility and a newly entered $325 million unsecured delayed-draw term loan. The facilities, through their accordion features, may be expanded up to $1.2 billion.
The $600 million revolver has a four-year term, with two six-month extension options, and bears an interest rate equal to LIBOR plus 120 basis points and a facility fee of 20 basis points. The $325 million term loan, which can be drawn within 12 months of closing, matures in three years, with two one-year extension options. It carries an interest rate equal to LIBOR plus 140 basis points and a ticking fee of 25 basis points on any undrawn balance.
Additionally, Mack-Cali obtained a $100 million, seven-year mortgage loan with a 3.75% fixed annual interest rate. The loan is secured by the company's 722-unit Alterra at Overlook Ridge multifamily community in Revere, Mass.
In December 2016, the company fully redeemed for cash the $135 million outstanding principal amount of its 7.75% notes due August 2019 at a price equal to 115.3% of the notes' principal amount, plus any accrued and unpaid interest.
During the fourth quarter of 2016, Mack-Cali repaid $200 million of mortgage debt on nine assets, with interest rates between 6.3% and 11.3%. It sold two of the assets and seven became unencumbered.
Wells Fargo Securities LLC, J.P. Morgan Chase Bank NA and Merrill Lynch Pierce Fenner & Smith Inc. were the joint lead arrangers and joint book runners for the credit facilities, while Capital One NA and U.S. Bank NA were the joint lead arrangers. JPMorgan Chase also served as administrative agent for the credit facilities.
Citibank NA, PNC Bank NA and BMO Harris Bank NA were the documentation agents, and The Bank of New York Mellon was the managing agent. Comerica Bank, TD Bank NA, Associated Bank NA and Fifth Third Bank were the other participating lenders.