NEW YORK CITY-Regional mall REIT RouseProperties said Monday it had closed on a $510-millioncorporate credit facility. The facility replaces the company'sexisting $337.9-million credit facility, which was due to mature inJanuary 2015, and consists of a $260-million, five-year term loanand a $250-million revolving line of credit with a four-yearinitial term and a one year extension option.

“With the closing of this facility we have taken anothermeaningful step towards supporting the future growth of our companyand improving our financial flexibility and balance sheet,” saysAndrew Silberfein, Rouse's president and CEO. He adds that the increase in the company's bank revolvercapacity, coupled with “significant reduction in the cost of thiscapital and the long-term nature of this commitment,” speaks to“not only the operational and leasing progress we have achieved todate, but highlights the improvement in Rouse's financial strengthas we continue to build value for our shareholders.“

Borrowings on the new facility will bear interest at gridpricing of Libor plus 185 to 300 basis points based on corporateleverage, compared to the Libor plus 450 bps of the company'sprevious facility. Rouse's revolving line of credit capacity willincrease by $100 million, while the $100-million subordinatedrevolving line of credit maturing in June of '15 will beeliminated. Proceeds from the increased term loan component will beused to retire a $70.9-million non-recourse mortgage loan onSouthland Mall in Hayward, CA prior to its maturity date thiscoming January.