General Growth completes refinancing of 5 malls

AP News
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Posted: Jun 06, 2011 6:46 PM
General Growth completes refinancing of 5 malls

General Growth Properties Inc. said Monday that it has refinanced mortgages on five shopping malls with $743 million in new loans.

The move comes as the shopping mall owner looks to reduce its interest expenses and lengthen the time before its debt comes due. General Growth lowered the weighted average interest rate of the mortgages to 5.40 percent from 6.29 percent, and extended the term by about five years.

The company said it used $139 million of the financing's proceeds to pay down mortgages on four properties.

General Growth, which owns such malls as Bridgewater Commons in N.J. and Faneuil Hall Marketplace in Boston, filed the largest real estate bankruptcy case in U.S. history in 2009 under the burden of nearly $28 billion in debt. It exited bankruptcy in November having restructured and extended some $15 billion in debt and worked out a way to pay all creditors in full.

General Growth shares ended the regular session down 19 cents at $16.04.