PHILADELPHIA, PA—PREIT has completed the refinancings of Willow Grove Park and Springfield Mall with loans totaling $202.5 million that carry a weighted average interest rate of 3.97 percent, generating proceeds of $38.1 million and future annual interest expense savings of approximately $2.5 million on the prior loan balances. The Company will use proceeds to repay amounts outstanding under its 2013 Revolving Facility.
Terms of the transactions follow:
| Prior Loan Terms | New Loan Terms | |||||
| Amount | Amount | Term | ||||
| Property | (in millions) | Interest Rate | (in millions) | Interest Rate | (in years) | |
| Willow Grove Park | $ 133.5 | 5.65% | $ 170.0 | 3.88% | 10 | |
| Springfield Mall | 30.8 | 4.77% | 32.5 | 4.45% | 10 | |
| $ 164.4 | 5.49% | $ 202.5 | 3.97% | |||
"We are pleased to complete the refinancing of our remaining 2015 maturities at favorable terms," says Joseph F. Coradino, CEO of PREIT. "We have reduced our interest rates, generated proceeds and extended our debt maturities, which improve our balance sheet and contribute to future earnings."
Willow Grove Park is a dominant super-regional mall located in the suburbs of Philadelphia anchored by Bloomingdale's, Macy's, Sears, JC Penney and Nordstrom Rack. Primark will open one of its first US locations at the center in 2016. One of PREIT's Premier Malls, the property boasted sales per square foot of $569 and non-anchor occupancy of 94.4 percent as of June 30, 2015.
Springfield Mall is a regional mall also located in the suburbs of Philadelphia anchored by Target and Macy's and is owned in a joint venture. As of June 301, 2015, the property was generating sales of $402 per square foot with non-anchor occupancy of 93.4 percent.
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