Mills amends loan, waiving defaults from restatements, filing delays

By Sara Rosenberg

New York, April 12 - The Mills Corp. amended its credit facility, waiving defaults through Dec. 31, 2006 arising from the pending restatement of financial statements and the delay in filing a 2005 form 10-K, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

In addition, under the amendment, the revolver interest rate was increased to Libor plus 225 basis points from Libor plus 145 bps and the term loan interest rate was increased to Libor plus 250 bps from Libor plus 200 bps.

Furthermore, the amendment allows for new borrowings of up to $341 million, which constitutes the currently unused portion of the company's $1 billion revolver. These new borrowings are permitted in two stages, with the first stage starting immediately, allowing for up to $50 million, and the second stage starting June 30, allowing for new borrowings in excess of $50 million.

As a condition to the new borrowings, the company's unrestricted cash balances must not exceed $20 million.

As part of the amendment, the company granted lenders a security interest in substantially all of its pledgeable assets.

The amendment was completed on April 5.

JPMorgan Chase Bank is the administrative agent on the deal.

The company is also obtaining waivers and standstill agreements with respect to defaults under construction loans at Pittsburgh Mills, Cincinnati Mills, St. Louis Mills and Discover Mills.

Mills is an Arlington, Va.-based developer, owner and manager of a diversified global portfolio of retail destinations, including regional shopping malls, market dominant retail and entertainment centers, and international retail and leisure destinations.

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