Rouse Properties gets $250 million revolver, $260 million term loan

By Tali David

Minneapolis, Nov. 26 - Rouse Properties, LP, the operating partnership of Rouse Properties, Inc., entered into a secured credit agreement that provides for extensions of credit, including up to $250 million of borrowings and the issuance of letters of credit on a revolving basis and a $260 million senior secured term loan, according to an 8-K filed with the Securities and Exchange Commission.

KeyBank NA is the administrative agent on the deal.

There is an accordion feature in an aggregate amount of up to $250 million, such that the total amount of the commitments and outstanding loans under the secured credit agreement does not exceed $760 million.

The loans bear interest at Libor plus 185 basis points to 300 bps, based upon a leverage ratio grid.

The proceeds from the revolving credit facility and the term loan will be used, among other things, to refinance existing debt. It is anticipated that about $71 million of the term loan will be funded to repay the debt secured by the company's Southland Mall, Calif., property prior to the maturity of the debt on Jan. 3.

The revolver matures on Nov. 21, 2017, which may be extended at Rouse's option until Nov. 21, 2018 upon certain conditions. The term loan matures on Nov. 21, 2018.

Rouse is a New York-based regional mall owner.

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