Jones Lang LaSalle
Mills Gets Default on Credit Line
By Ian Ritter
Last updated: April 12, 2006 02:43pm
(Ian Ritter is national online editor for GlobeSt.com/RETAIL.)
ARLINGTON, VA-Troubled retail-REIT the Mills Corp. received waivers of default from its lenders through Dec. 31, which also permit new borrowings, under certain conditions, of up to $341 million. Mills is also in the process of obtaining waivers on the construction loans of four of its completed projects.
The company is currently exploring a sale and is under investigation by the SEC for accounting flaws. Mills is restating its financials from 2000 through last year after its third-quarter NOI and FFO dropped due to the failure to collect rents, charges on projects under construction and other factors. For previous coverage, click here.
Meanwhile, JP Morgan provided the company with a $625-million mortgage on Sawgrass Mills, a center in Sunrise, FL, to replace a $268-million mortgage and $74 million in mezzanine financing. Executives expect to generate about $246 million in proceeds from the deal.
Mills’ management also plans to refinance its Madrid (Spain) Xanadu and Vaughan (Ontario) Mills centers. The refinancing and access to its credit line will allow it to pursue its current developments, says Laurence Siegel, the company’s chairman and chief executive officer. Among the major projects it has in the pipeline are Meadowlands Xanadu in East Rutherford, NJ and 108 N. State St. in Chicago.
"This financial flexibility should also strengthen the company's position with respect to its previously announced exploration of strategic alternatives," says Siegel, in a statement. So far, Vornado Realty Trust, other publicly traded REITs and private-equity firms have been named as potential buyers of some or all of Mills’ assets.
Mills is also paying a dividend of just over 25 cents per share on its common stock for the period from Feb. 2 to May 1. The company owns 42 centers in North America and Europe.
Mills Gets Default on Credit Line
By Ian Ritter
Last updated: April 12, 2006 02:43pm
(Ian Ritter is national online editor for GlobeSt.com/RETAIL.)
ARLINGTON, VA-Troubled retail-REIT the Mills Corp. received waivers of default from its lenders through Dec. 31, which also permit new borrowings, under certain conditions, of up to $341 million. Mills is also in the process of obtaining waivers on the construction loans of four of its completed projects.
The company is currently exploring a sale and is under investigation by the SEC for accounting flaws. Mills is restating its financials from 2000 through last year after its third-quarter NOI and FFO dropped due to the failure to collect rents, charges on projects under construction and other factors. For previous coverage, click here.
Meanwhile, JP Morgan provided the company with a $625-million mortgage on Sawgrass Mills, a center in Sunrise, FL, to replace a $268-million mortgage and $74 million in mezzanine financing. Executives expect to generate about $246 million in proceeds from the deal.
Mills’ management also plans to refinance its Madrid (Spain) Xanadu and Vaughan (Ontario) Mills centers. The refinancing and access to its credit line will allow it to pursue its current developments, says Laurence Siegel, the company’s chairman and chief executive officer. Among the major projects it has in the pipeline are Meadowlands Xanadu in East Rutherford, NJ and 108 N. State St. in Chicago.
"This financial flexibility should also strengthen the company's position with respect to its previously announced exploration of strategic alternatives," says Siegel, in a statement. So far, Vornado Realty Trust, other publicly traded REITs and private-equity firms have been named as potential buyers of some or all of Mills’ assets.
Mills is also paying a dividend of just over 25 cents per share on its common stock for the period from Feb. 2 to May 1. The company owns 42 centers in North America and Europe.
posted by Jones Lang LaSalle NJ News Blog at 9:51 AM
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