EDISON, NJ – Mack-Cali Realty Corp. sold $250 million of five-year senior notes in a public offering on Tuesday. The estimated proceeds of the offering are expected to be more than $246 million.
The REIT reports that the offering by its operating partnership, Mack-Cali Realty, LP, involves 2.500% notes due in 2017. The underwritten public offering was through joint book-running managers BofA Merrill Lynch Citigroup and J.P. Morgan.
BB&T Capital Markets, BNY Mellon Capital Markets, LLC, Capital One Southcoast, Comerica Securities, Deutsche Bank Securities, Mitsubishi UFJ Securities, PNC Capital Markets LLC, RBS, SunTrust Robinson Humphrey, TD Securities, US Bancorp and Wells Fargo Securities acted as co-managers. The notes were priced at 99.409% of the principal amount to yield 2.625% to maturity, company officials state.
The proceeds of the offering, after deducting underwriting discounts and offering expenses, have been estimated at approximately $246.3 million. The company states the proceeds are to be used for general corporate purposes and working capital, including the repayment of substantially all outstanding borrowings under the operating partnership’s unsecured revolving loan facility.
In late October the company reported it had closed on the $134.6-million purchase of New Jersey developer Roseland Partners, L.L.C. That transaction was financed through a combination of cash on hand and borrowings under Mack-Cali’s $600-million unsecured revolving credit facility. In its third quarter 2012 filing, the company reported it had $67 million in liabilities under its revolving loan facility.
In October 2011 Mack-Cali reported it had refinanced its unsecured $600-million revolving loan credit facility with a group of 20 lenders. The credit line, which the company stated was expandable to $1 billion, carries an interest rate equal to LIBOR plus 125 basis points and had a four-year term with a one-year extension option as of the refinancing more than a year ago.
Mack-Cali owns or has interests in 281 properties in the Northeast consisting of 275 office and office/flex properties totaling approximately 31.9 million sf and six multi-family rental properties containing more than 1,700 residential units.