Mack-Cali Realty Corporation Obtains $100 Million Increase in Unsecured Credit Facility and Reduces Interest Rate by 20 Basis Points
01/22/1999 Category: Financial
CRANFORD, NJ--January 22, 1999--Mack-Cali Realty Corporation (NYSE:CLI) today announced that the borrowing capacity under its unsecured credit facility has been expanded by $100 million to $1 billion. Combined with the Company's existing $100 million credit facility with Prudential Realty Funding Corporation, Mack-Cali's revolving credit lines now total $1.1 billion.
The Company's unsecured credit facility, led by The Chase Manhattan Bank and Fleet National Bank, PNC Bank and NationsBank, has been expanded through additional commitments from the lead banks as well as from First Union National Bank, Dresdner Bank AG, USTrust and Bayerische Landesbank Girozentrale. With the Company's recent achievement of a BBB senior unsecured debt rating from both Standard & Poor's rating Services and Duff & Phelps Credit Rating Company, the interest rate on the expanded facility was reduced by 20 basis points over LIBOR. All other terms of the agreement remain unchanged. The facility matures in April 2001 and has a one-year extension option.
Barry Lefkowitz, executive vice president and chief financial officer, stated, "We believe today's announcement represents an important vote of confidence in our ongoing business strategy. The increase in our credit facility and achievement of an investment grade rating enhances our financial flexibility and ability to pursue opportunities."
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 pending transactions, Mack-Cali will own or have interests in 255 properties, primarily office and office/flex buildings, totaling approximately 28.1 million square feet, serving over 2,300 tenants in 12 states and the District of Columbia.
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, current reports on Form 8-K, and annual reports on Form 10-K.