Mack-Cali Realty Issues $300 Million of Senior Unsecured Notes

01/24/2001 Category: Offerings

CRANFORD, NJ-- January 24, 2001-- Mack-Cali Realty Corporation (NYSE:CLI) announced today that its operating partnership, Mack-Cali Realty, L.P., completed the sale of $300 million of 10-year senior unsecured notes. The 7.75% notes are due February 15, 2011 and are rated BBB by Standard & Poor's, Baa3 by Moody's and BBB by Fitch, Inc.

The proceeds from the issuance (net of selling commissions and discount) are approximately $296.3 million and will be used principally to repay outstanding borrowings under the Company's unsecured revolving credit facility.

Commenting on the transaction, Mitchell E. Hersh, chief executive officer of Mack-Cali Realty Corporation, stated, "We are very pleased with investor response to this offering. The execution of this transaction reflects the capital markets' confidence in Mack-Cali's focused Northeast strategy and recognition of the high quality of the cash flows from our portfolio."

Barry Lefkowitz, executive vice president and chief financial officer of Mack-Cali, stated, "This issuance is a continuation of our successful financing strategy and further strengthens Mack-Cali's financial position by replacing the majority of our variable rate borrowings with attractively-priced, long-term fixed rate debt."

JP Morgan and Salomon Smith Barney served as joint bookrunners on the issuance. The co-managers consisted of: Bear, Stearns & Co. Inc.; Credit Suisse First Boston; Banc of America Securities LLC; Dresdner Kleinwort Wasserstein; First Union Securities, Inc.; Goldman, Sachs & Co.; Lehman Brothers; Merrill Lynch & Co.; and Morgan Stanley Dean Witter. 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 267 properties, primarily office and office/flex buildings, located in the Northeast, totaling approximately 28.2 million square feet. The properties enable the Company to provide a full complement of real estate opportunities to its diverse base of over 2,400 tenants. Additional information on Mack-Cali Realty Corporation is available on the Company's website at

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

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.