Only a small amount of General Growth Properties' $2.85 billion credit traded when it broke in the secondary market last week. "People got what they wanted [in allocation]; there was not a lot of trading," said a dealer. Wachovia Capital, Banc of America Securities and Eurohypo lead the deal, which is priced at LIBOR plus 1 1/4%. The deal was expected to be pitched mostly to banks (CIN, 1/30), but the trader added that some institutional accounts invested in the loan. The term loan broke at 100 3/8.
The deal also consists of a $650 million revolver and a $1.5 billion short-term loan that is a bridge to the CMBS market. The proceeds will be used to refinance a 2004 credit facility, which comprises a $3.65 billion term loan "A," a $2 billion term loan "C" and a $500 million revolver. The company used proceeds from the facility to buy The Rouse Company. Bernard Freibaum, GGP cfo, did not return calls.
Standard & Poor's assigned a BB+ rating to the term loan and revolver. The ratings reflect its strong market position in the U.S. regional mall sector, its high quality portfolio and solid operating performance.