Refinancing of Secured Term Loan Expected to Drive More than $30 Million Improvement in Free Cash Flow
CBL Properties (NYSE: CBL) today announced that it has successfully refinanced its existing $634 million term loan through two complementary transactions. Today, CBL closed on a $425 million non-recourse financing secured by a pool of primarily mall properties. In addition, CBL anticipates closing shortly on a $176 million floating-rate bank loan primarily secured by a pool of strong open-air lifestyle centers. The new $425 million financing represents the first enclosed regional mall execution of its kind completed in the sector in many years, signaling renewed capital‑markets confidence in quality market-dominant enclosed malls. Although the final maturity of the original term loan was November 2027, refinancing early enables the Company to secure more favorable amortization structures, increasing estimated annual free cash flow by more than $30 million.
“This transformative financing strengthens our balance sheet, reduces overall debt by $33 million, extends our maturity profile, and provides meaningful flexibility as we execute our long‑term strategy,” said Ben Jaenicke, EVP – Chief Financial Officer. “The strong lender response and favorable terms reflect increasing confidence in our portfolio and our disciplined operating strategy. With a significantly improved free cash flow profile due to the more conventional amortization structure under the new loans, CBL is well‑positioned to pursue value‑enhancing investments and deliver additional returns to shareholders.”
The Company obtained $425 million of non‑recourse financing with a five‑year term maturing in 2031 and a fixed rate of 7.40%. The loan is secured by a pool of primarily mall properties that previously served as collateral for the term loan including: Cherryvale Mall (Rockford, IL), Frontier Mall (Cheyenne, WY), Hanes Mall (Winston-Salem, NC), Kirkwood Mall (Bismarck, ND), Mall Del Norte (Laredo, TX), Post Oak Mall (College Station, TX), Richland Mall (Waco, TX), Sunrise Mall (Brownsville, TX), Turtle Creek Mall (Hattiesburg, MS), Valley View Mall (Roanoke, VA), West Towne Mall (Madison, WI), and Westmoreland Mall and Westmoreland Crossing (Greensburg, PA). Northgate Mall (Chattanooga, TN), will be unencumbered through the refinancing, providing flexibility for future redevelopment.
The Company also anticipates closing shortly on a $176 million floating‑rate, non‑recourse loan secured by Mayfaire Town Center (Wilmington, NC), Pearland Town Center (Pearland, TX), Southaven Town Center (Southaven, MS) and East Towne Mall (Madison, WI). The properties also previously served as collateral for the term loan. The facility carries a five‑year term with two one‑year extension options and is interest‑only with an interest rate of SOFR + 410 basis points.
After incorporating the impact of these transactions, the Company is revising its full‑year 2026 amortization guidance to a range of $58–$63 million.
