Mack-Cali Realty Corporation Issues $600 Million of Senior Unsecured Notes

03/11/1999 Category: Offerings

CRANFORD, NJ--March 11, 1999-- Mack-Cali Realty Corporation (NYSE:CLI) announced today that its operating partnership, Mack-Cali Realty, L.P., completed the successful sale of $600 million of senior unsecured notes. The issue included the following two tranches:

$300 million of 7.00% notes due March 15, 2004 and $300 million of 7.25% notes due March 15, 2009. These securities are rated BBB by Standard & Poor's and Duff & Phelps and Baa3 by Moody's.

The total proceeds from the issuance (net of selling commissions and discount) is approximately $593.5 million. Including amortization of offering costs, the weighted average effective annual rate for the senior unsecured note offering will be 7.31%. The proceeds will be used to repay outstanding borrowings under the Company's unsecured credit facility, which will result in approximately $1.0 billion of availability under its revolving credit facilities.

"We are very pleased with the investor response to our debut bond offering. This issuance, which comes on the heels of our achievement of investment grade credit ratings, is a clear reflection of the financial community's belief in the quality and diversity of our portfolio. As a continuation of our long-term financing strategy, the issuance of the notes greatly strengthens Mack-Cali's financial position by replacing a significant portion of our variable rate revolving credit line borrowings with attractively-priced fixed rate debt and providing us with a lengthened and staggered debt maturity schedule," commented Barry Lefkowitz, executive vice president and chief financial officer of Mack-Cali Realty Corporation. Mr. Lefkowitz continued, "This successful offering, combined with our measured, research-driven approach to capital deployment, provides us with a solid framework on which to operate and grow our Company."

J.P. Morgan & Company and Salomon Smith Barney served as joint lead managers and joint bookrunners of a group of co-managers, consisting of Bear Stearns & Co. Inc., Chase Securities Inc., Donaldson Lufkin & Jenrette, Goldman, Sachs & Co., Merrill Lynch & Co., Morgan Stanley Dean Witter and Prudential Securities.

Mack-Cali Realty Corporation is a fully-integrated, self-administered, self-managed real estate investment trust (REIT) providing management, leasing, development, construction and other tenant-related services for its class A real estate portfolio. Mack-Cali owns or has interests in 249 properties, primarily office and office/flex buildings, totaling approximately 27.8 million square feet, located in 12 states and the District of Columbia. The properties, which are primarily located in the Northeast, enable the Company to provide a full complement of real estate opportunities to its diverse base of over 2,400 tenants.

An offering of these securities will be made only by means of a prospectus.

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.