Mack-Cali Realty Corporation Receives New $870 Million Unsecured Revolving Credit Facility
04/23/1998 Category: Financial
Company's Credit Facilities Now Total $970 Million
CRANFORD, NJ--April 23, 1998--Mack-Cali Realty Corporation (NYSE:CLI) today announced that it has completed an $870 million unsecured revolving credit facility with a group of 25 lender banks, arranged by Chase Securities Inc. and Fleet National Bank. The facility has a three-year term with a one-year extension option.
In conjunction with the completion of the new facility, the Company retired its existing $400 million credit facility. The new credit facility carries an interest rate equal to LIBOR plus 110 basis points, representing a reduction of 15 basis points from the previous facility. Based upon the Company's achievement of an investment grade long-term unsecured debt rating, the interest rate on the new facility will be reduced, on a sliding scale, and a competitive bid option will become available.
"This new credit line reinforces the confidence the financial community has in Mack-Cali's future," commented Barry Lefkowitz, executive vice president and chief financial officer. "With $970 million in credit lines, in addition to the reduced interest rate this new facility provides, the Company now has significant financial flexibility to take advantage of the numerous acquisition and growth opportunities we are seeing in the marketplace," he added.
Mack-Cali plans to utilize the new facility to finance its future acquisitions activity, for general working capital needs, and for other future debt repayments.
The Company's original credit facility agreement with Chase Securities Inc. and Fleet National Bank, which was announced in March, was for $800 million. Due to strong demand in the syndicated loan market, the facility was increased to $870 million. Combined with the Company's existing $100 million credit facility with Prudential Realty Funding Corporation, Mack-Cali's revolving credit lines now total $970 million.
The lending group for the new credit line consists of: Chase Manhattan Bank, as administrative agent; Fleet National Bank, as syndication agent; PNC Bank, as documentation agent; Bankers Trust, Commerzbank, First National Bank of Chicago, First Union National Bank and Nationsbank, as managing agents; Creditanstalt, Dresdner, EAB, HYPO, Societe Generale and Summit Bank, as co-agents; and Kredietbank, Key Bank, Mellon Bank, Bank of New York, Citizens Bank, Crestar, DG Bank, Tokai Bank, US Trust, Bayerische Landesbank and Erste Bank.
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 constitute forward-looking statements within the meaning of the Federal Securities law. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual 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 availability of financing; and other risks associated with the development 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 operating costs may be greater than anticipated. For further information on factors which could impact the Company and the statements 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.