Mack-Cali Realty Corporation Completes $150 Million Secured Loan
05/01/1998 Category: Financial
CRANFORD, NJ--May 1, 1998--Mack-Cali Realty Corporation (NYSE:CLI) today announced it has closed on the previously announced $150 million, seven-year, 7% interest-only secured loan from The Prudential Insurance Company of America. The loan includes a conversion feature whereby the Company, upon receiving an investment-grade credit rating, will have the option to convert the loan into senior unsecured debt. The proceeds of the loan were used, along with funds drawn from one of the Company's credit facilities, to retire a $200 million term loan with Prudential Securities Credit Corporation and $48.2 million of mortgage debt, both of which were assumed by the Company in connection with the Company's transaction with The Mack Company and Patriot American Office Group.
"The new loan improves the Company's debt maturity profile and offers us greater flexibility to structure our financial strategy and advance our growth," commented Barry Lefkowitz, executive vice president and chief financial officer.
Mack-Cali Realty Corporation is a fully integrated, self- administered, self-managed real estate investment trust (REIT) providing leasing, management, acquisition, development, construction and tenant-related services for its portfolio. With the completion of the Company's pending transactions, Mack-Cali will own 241 properties, primarily office and office/flex buildings, totaling approximately 26.1 million square feet and serving over 2,300 tenants. Mack-Cali's properties are located in 11 states, primarily in the Northeast, as well as in the Southwest and West.
Additional information on Mack-Cali Realty Corporation is available on the Company's website at www.mack-cali.com.
Certain information discussed in this press release may consti- tute forward-looking statements within the meaning of the Federal Securities law. Although the Company believes that the expecta- tions reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expec- tations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause ac- tual results to differ materially from those projected. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office, office/flex and industrial/warehouse properties; interest rate levels; the avail- ability of financing; and other risks associated with the devel- opment and acquisition of properties, including risks that the development may not be completed on schedule, that the tenants will not take occupancy or pay rent, or that development or oper- ating costs may be greater than anticipated. For further infor- mation on factors which could impact the Company and the state- ments contained herein, reference should be made to the Company's filings with the Securities and Exchange Commission including quarterly reports on Form 10-Q, reports on Form 8-K, and annual reports on Form 10-K.