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Subsequent Events
9 Months Ended
Sep. 30, 2014
Subsequent Events [Abstract]  
Subsequent Events
Subsequent Events
In October 2014, Columbia Place was conveyed to the lender of the non-recourse loan secured by the property through a deed-in-lieu of foreclosure. See Note 6 for additional information.
In October 2014, TPD agreed to a resolution of its claims against defendant EMJ in the litigation described in Note 12. Pursuant to this agreement, TPD received partial settlements of $970 and $250, respectively, from one of EMJ’s insurance carriers in October 2014, and additional amounts of $4,750 and $5,000 are due to be paid to TPD in December 2014 and January 2015, respectively. Further, EMJ agreed to be responsible for up to a maximum of $6,600 of future costs incurred by TPD in remediating damages to its shopping center site under certain circumstances as set forth in the agreement, and agreed that such limitation would not apply to its potential responsibility for any future remediation required under applicable environmental laws (should such claims arise). Litigation continues with the other remaining defendants in the matter.
In October 2014, the Company retired an operating property loan, with a principal balance of $113,400 outstanding as of September 30, 2014, with borrowings from its credit facilities. The loan was secured by Mall del Norte in Laredo, TX and was scheduled to mature in December 2014.
In October 2014, the Operating Partnership issued $300,000 of senior unsecured notes that bear interest at 4.60% payable semiannually beginning April 15, 2015 and mature on October 15, 2024 ("the 2024 Notes"). The interest rate will be subject to an increase ranging from 0.25% to 1.00% from time to time if, on or after January 1, 2016 and prior to January 1, 2020, the ratio of secured debt to total assets of the Company, as defined, is greater than 40% but less than 45%. The 2024 Notes are redeemable at the Operating Partnership's election, in whole or in part from time to time, on not less than 30 days notice to the holders of the 2024 Notes to be redeemed. The 2024 Notes may be redeemed prior to July 15, 2024 for cash, at a redemption price equal to the greater of (1) 100% of the aggregate principal amount of the 2024 Notes to be redeemed or (2) an amount equal to the sum of the present values of the remaining scheduled payments of principal and interest on the 2024 Notes to be redeemed, discounted to the redemption date on a semi-annual basis at the treasury rate, as defined, plus 0.35%, plus accrued and unpaid interest. CBL is a limited guarantor of the Operating Partnership's obligations under the 2024 Notes, for losses suffered solely by reason of fraud or willful misrepresentation by the Operating Partnership or its affiliates. On or after July 15, 2024, the 2024 Notes are redeemable for cash at a redemption price equal to 100% of the aggregate principal amount of the 2024 Notes to be redeemed plus accrued and unpaid interest. After deducting underwriting and other offering expenses of $2,245 and a discount of $75, the net proceeds from the sale of the 2024 Notes was approximately $297,680, which the Operating Partnership used to reduce the outstanding balances on its credit facilities.
The Company has evaluated subsequent events through the date of issuance of these financial statements.