Mills Corp closes $1.91bln financing facility from Goldman
23 May '06
2 min read
The Mills Corporation, a developer, owner and manager of a diversified global portfolio of retail destinations, announced that on May 19, 2006 it closed on $1.91 billion of the previously announced $2.23 billion financings with Goldman Sachs Mortgage Company ("GSMC").
The remaining portion of the financings is expected to be closed over the next several months. The net proceeds were used to pay off the Company's existing line of credit, two corporate-level term loans, the repayment of one recourse construction loan and the acquisition by GSMC of three recourse construction loans.
The remaining funds, of approximately $387 million (before the establishment of an interest reserve escrow), will be used for working capital and general corporate purposes. Additional information regarding the terms of the financings will be set forth in a Form 8-K to be filed with the Securities and Exchange Commission.
"Everyone at The Mills is focused on managing our core business, including developments and redevelopments, while moving forward in the exploration of strategic alternatives. This financing enhances our liquidity and enables us to concentrate on our business and strategic decisions in support of our shareholders," said Laurence C. Siegel, Chairman and CEO of The Mills Corporation.
As previously announced, The Mills Corporation is working with Goldman, Sachs & Co. and JP Morgan to advise The Mills in considering its strategic alternatives. The Company announced that it was seeking indications of interest from prospective buyer and investors by June 13, 2006. To date, the Company has entered into confidentiality agreements with more than 30 potential buyers and investors.
The Mills Corporation, based in Arlington, Virginia, is a 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. It currently owns 42 properties in the U.S., Canada and Europe, totaling 51million square feet.