Westfield America has selected PNC Bank to provide a $92 million construction loan that will be used to renovate and expand a regional mall in Palm Desert, Calif. PNC, which will hold about $30 million, is planning to have a bank meeting in June. It is looking for four to five lenders to round out the syndicate.
The three-year loan, which includes a one-year extension option, is split into two tranches. The $54 million "A" tranche is a non-recourse loan priced at LIBOR plus 170. The $38 million "B" tranche is full recourse loan that is priced at LIBOR plus 190. Westfield has selected PNC to provide three other construction loans in the past three years, all of which have had a similar structure.