Cadillac Fairview refinances debt of $250 million to fund Limeridge Mall and Toronto Eaton Centre Expansion.
The Corporation raised $125 million at an effective rate of 6.30 percent on its refinancing of Limeridge Mall, a dominant 826,000 square foot super regional shopping centre in Hamilton, Ontario. The proceeds were used to repay existing debt which had a cost of 9.25 percent and finance the recent acquisition of the underlying lands at Limeridge Mall from Confederation Life. The Corporation incurred a prepayment penalty of $4.3 million in connection with the refinancing.
The Corporation also raised $112.5 million on the refinancing of 250 Yonge Street Tower. The proceeds were used to repay existing high cost floating rate debt and provide funds for the recently announced redevelopment at Toronto Eaton Centre, a 3.4 million square foot mixed-use retail and office property in downtown Toronto. As a result of hedging strategies the effective rate on this financing is 5.84 percent.
The Toronto Eaton Centre redevelopment is expected to be completed by the summer of 1999 at a cost of $40 million. This redevelopment includes the following: - The Yonge Street facade is being extended eastward towards the street creating 20,000 square feet of retail space including the flagship Roots store opening in the fall of 1998. - The Centre Court expansion will add 50,000 square feet of new retail space at centre court as well as a new west side entrance way for the centre. - The 250, a 35-storey office tower at 250 Yonge Street, is undergoing a major renovation of its lobby to give the building a stronger presence on Yonge Street.
In addition the Corporation also raised $12.5 million for general corporate purposes following the issuance of 6.23 percent Series E Bonds on Fairview Mall, a 881,000 square foot super regional shopping centre in Toronto.
"This refinancing activity is consistent with our objective of lowering our overall cost of capital and allows us to utilize low cost capital to fund the Limeridge lands acquisition and the redevelopment of one of Toronto's landmark retail properties", said Jon Hagan, Executive Vice President and Chief Financial Officer. "Our annual interest costs will decrease by $2.3 million or $0.03 per share as a result of these refinancings", he added.
Cadillac Fairview is one of the largest owners, managers and developers of commercial real estate in North America, focusing on high quality retail centres in Canada and the U.S., and office properties in major Canadian cities. It owns interests in or manages 96 properties amounting to over 49 million square feet, including some of Canada's landmark properties such as the Toronto Eaton Centre and Toronto Dominion Centre in Toronto, Pacific Centre in Vancouver and Montreal Eaton Centre in Montreal.
CONTACT: Cadillac Fairview Corporation
Jon N. Hagan, 416/ 598-8739
416/ 598-8254 (FAX)
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|Date:||Apr 22, 1998|
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