The Mills Corp. has completed a $500 million credit that helped finance the acquisition of Del Amo Fashion Center and Great Mall of the Bay Area. "The new facility increases financial flexibility and allows The Mills to seize opportunities to grow," said Noam Saxonhouse, v.p. of investor relations for the Arlington, Va.-based real estate investment trust. "If you have the chance to get increased financial flexibility at a low rate, there is no reason not to," he stated. In addition to its recent acquisitions, the company is certainly looking at other opportunities to expand, noted Saxonhouse. "The Mills has a very active development pipeline and an active acquisitions program," he added.
J.P. Morgan and Fleet Securities lead the new deal. Fleet led the company's previous $175 million credit and J.P. Morgan was added as co-arranger on the new credit because it was able to give The Mills a better rate, said a company official. Saxonhouse said the new credit has a better rate because The Mills' business has grown and the financial community better appreciates the company's assets.
The $500 million revolver matures in June 2006, has a one-year extension option and is priced on a leverage-based grid ranging from 11/2% to 21/2% above LIBOR.