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Mortgage and Other Indebtedness, Net | 6 Months Ended
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Jun. 30, 2021
Debt Disclosure [Abstract] |
Mortgage and Other Indebtedness, Net | Note 9 – Mortgage and Other Indebtedness, Net Debt of the Company CBL has no indebtedness. Either the Operating Partnership or one of its consolidated subsidiaries, that it has a direct or indirect ownership interest in, is the borrower on all the Company's debt. CBL is a limited guarantor of the senior unsecured notes (the "Notes"), as described below, for losses suffered solely by reason of fraud or willful misrepresentation by the Operating Partnership or its affiliates. The Company also provides a similar limited guarantee of the Operating Partnership's obligations with respect to its secured credit facility and secured term loan as of June 30, 2021. Debt of the Operating Partnership Mortgage and other indebtedness, net, consisted of the following:
|  | June 30, 2021 |  |  | December 31, 2020 |
|  | Amount |  |  | Weighted- Average Interest Rate (1) |  |  | Amount |  |  | Weighted- Average Interest Rate (1) |
Fixed-rate debt: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-recourse loans on operating Properties |  | $ | 963,118 |  |  |  | 5.07 | % |  | $ | 1,120,203 |  |  |  | 5.12 | %
Total fixed-rate debt |  |  | 963,118 |  |  |  | 5.07 | % |  |  | 1,120,203 |  |  |  | 5.12 | %
Variable-rate debt: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recourse loans on operating Properties |  |  | 27,461 |  |  |  | 2.99 | % |  |  | 68,061 |  |  |  | 4.69 | %
Total variable-rate debt |  |  | 27,461 |  |  |  | 2.99 | % |  |  | 68,061 |  |  |  | 4.69 | %
Total fixed-rate and variable-rate debt |  |  | 990,579 |  |  |  | 5.01 | % |  |  | 1,188,264 |  |  |  | 5.10 | %
Unamortized deferred financing costs (2) |  |  | (2,987 | ) |  |  |  |  |  |  | (3,433 | ) |  |  |  |
Total mortgage and other indebtedness, net |  | $ | 987,592 |  |  |  |  |  |  | $ | 1,184,831 |  |  |  |  |
Mortgage and other indebtedness included in liabilities subject to compromise consisted of the following:
|  | June 30, 2021 |  |  | December 31, 2020 |
|  | Amount |  |  | Weighted- Average Interest Rate (1) |  |  | Amount |  |  | Weighted- Average Interest Rate (1) |
Fixed-rate debt: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Senior unsecured notes due 2023 (3) |  | $ | 450,000 |  |  |  | 5.25 | % |  | $ | 450,000 |  |  |  | 5.25 | %
Senior unsecured notes due 2024 (3) |  |  | 300,000 |  |  |  | 4.60 | % |  |  | 300,000 |  |  |  | 4.60 | %
Senior unsecured notes due 2026 (3) |  |  | 625,000 |  |  |  | 5.95 | % |  |  | 625,000 |  |  |  | 5.95 | %
Total fixed-rate debt |  |  | 1,375,000 |  |  |  | 5.43 | % |  |  | 1,375,000 |  |  |  | 5.43 | %
Variable-rate debt: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Secured line of credit (4) |  |  | 675,926 |  |  |  | 9.50 | % |  |  | 675,926 |  |  |  | 9.50 | %
Secured term loan (4) |  |  | 438,750 |  |  |  | 9.50 | % |  |  | 438,750 |  |  |  | 9.50 | %
Recourse loan on operating Property (5) |  |  | 39,462 |  |  |  | 5.76 | % |  |  | — |  |  |  | — |
Total variable-rate debt |  |  | 1,154,138 |  |  |  | 9.37 | % |  |  | 1,114,676 |  |  |  | 9.50 | %
Total fixed-rate and variable-rate debt |  |  | 2,529,138 |  |  |  | 7.23 | % |  |  | 2,489,676 |  |  |  | 7.25 | %
Unpaid accrued interest (6) |  |  | 58,370 |  |  |  |  |  |  |  | 57,644 |  |  |  |  |
Prepetition unsecured or under secured liabilities |  |  | 4,198 |  |  |  |  |  |  |  | 4,170 |  |  |  |  |
Total liabilities subject to compromise |  | $ | 2,591,706 |  |  |  |  |  |  | $ | 2,551,490 |  |  |  |  |
(1) | Weighted-average interest rate excludes amortization of deferred financing costs.
(2) | Unamortized deferred financing costs of $2,624 for certain property-level, non-recourse mortgage loans may be required to be written off in the event a waiver or restructuring of terms cannot be negotiated and the debt is either redeemed or otherwise extinguished.
(3) | In accordance with ASC 852, which limits the recognition of interest expense during a bankruptcy proceeding to only amounts that will be paid during the bankruptcy proceeding or that are probable of becoming allowed claims, interest has not been accrued on the senior unsecured notes subsequent to the filing of the Chapter 11 Cases. The outstanding amount of the senior unsecured notes is included in liabilities subject to compromise in the accompanying condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020.
(4) | The administrative agent informed the Company that interest will accrue on all outstanding obligations at the post-default rate, which is equal to the rate that otherwise would be in effect plus 5.0%. The post-default interest rate at June 30, 2021 and December 31, 2020 was 9.50%. In accordance with ASC 852, which limits the recognition of interest expense during a bankruptcy proceeding to only amounts that will be paid during the bankruptcy proceeding or that are probable of becoming allowed claims, interest has not been accrued on the secured credit facility subsequent to the filing of the Chapter 11 Cases. The outstanding amount of the secured credit facility is included in liabilities subject to compromise in the accompanying condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020.
(5) | On May 26, 2021, the subsidiary that owns The Outlet Shoppes at Laredo filed for bankruptcy.
(6) | As of June 30, 2021, represents interest accrued on the loan secured by The Outlet Shoppes at Laredo prior to May 26, 2021, and the secured credit facility and senior unsecured notes prior to the filing of the Chapter 11 Cases. As of December 31, 2020, represents interest accrued on the secured credit facility and senior unsecured notes prior to the filing of the Chapter 11 Cases.
Non-recourse term loans, recourse term loans, the secured line of credit and the secured term loan include loans that are secured by Properties owned by the Company that have a net carrying value of $2,154,326 at June 30, 2021. Senior Unsecured Notes (1)
Description |  | Issued (2) |  | Amount |  |  | Interest Rate |  |  | Maturity Date
2023 Notes |  | November 2013 |  | $ | 450,000 |  |  |  | 5.25 | % |  | December 2023
2024 Notes |  | October 2014 |  |  | 300,000 |  |  |  | 4.60 | % |  | October 2024
2026 Notes |  | December 2016 / September 2017 |  |  | 625,000 |  |  |  | 5.95 | % |  | December 2026
(1) | In March 2021, the Company entered into an amended and restated Restructuring Support Agreement with its secured credit facility lenders and senior unsecured noteholders that provides for a fully consensual comprehensive restructuring.
(2) | Issued by the Operating Partnership. CBL is a limited guarantor of the Operating Partnership’s obligations under the Notes.
Senior Secured Credit Facility The Company has a $1,185,000 senior secured credit facility, which includes a revolving line of credit drawn to its maximum borrowing capacity of $675,926 and a term loan with an outstanding balance of $438,750 at June 30, 2021. As further described in Note 2 and in Financial Covenants and Restrictions below, the filing of the Chapter 11 Cases constituted an event of default that resulted in certain monetary obligations becoming immediately due and payable with respect to the secured credit facility. In March 2020, the Company drew $280,000 on its secured credit facility to increase liquidity and preserve financial flexibility in light of the uncertainty surrounding the impact of the COVID-19 pandemic. As a result of the events of default described under Financial Covenants and Restrictions below, the Operating Partnership cannot borrow any additional amounts under the secured line of credit. The secured credit facility is secured by 17 malls and 3 associated centers that are owned by 36 wholly owned subsidiaries of the Operating Partnership (collectively the “Combined Guarantor Subsidiaries”). The Combined Guarantor Subsidiaries own an additional four malls, two associated centers and four mortgage notes receivable that are not collateral for the secured credit facility. The properties that are collateral for the secured credit facility and the properties and mortgage notes receivable that are not collateral are collectively referred to as the “Guarantor Properties.” The terms of the Notes provide that, to the extent that any subsidiary of the Operating Partnership executes and delivers a guarantee to another debt facility, the Operating Partnership shall also cause the subsidiary to guarantee the Operating Partnership’s obligations under the Notes on a senior basis. See Financial Covenants and Restrictions below and Liquidity and Going Concern Considerations and Voluntary Reorganization under Chapter 11 in Note 2 for information on the event of default resulting from the filing of the Chapter 11 Cases. Financial Covenants and Restrictions The agreements for the Notes and senior secured credit facility contain default provisions customary for transactions of this nature (with applicable customary grace periods). Any default in the payment of any recourse indebtedness of the Operating Partnership greater than or equal to $50,000 will constitute an event of default under the Notes and the senior secured credit facility. Additionally, the secured credit facility contains a provision that any default on a payment of non-recourse indebtedness in excess of $150,000 is also a default of the senior secured credit facility. The filing of the Chapter 11 Cases constituted an event of default that resulted in certain monetary obligations becoming immediately due and payable with respect to the secured credit facility and the senior unsecured notes. The filing of the Chapter 11 Cases also constituted an event of default with respect to certain property-level debt of the Operating Partnership’s subsidiaries, which may result in acceleration of the outstanding principal and other sums due. Certain of the Company’s properties that are pledged as collateral on non-recourse mortgage loans and the secured credit facility are subject to cash management agreements with the lenders, which restrict the cash balances associated with those properties to only be used for debt service, capital items and operating expense obligations. Loans in Default As of June 30, 2021, two non-recourse loans that are each secured by one of the Company’s malls were in default. The default of the two non-recourse loans occurred prior to the filing of the Chapter 11 Cases. As of June 2021, the lenders under each of these loans accelerated the outstanding amounts due and payable on the loans. The foreclosure process has not yet commenced for EastGate Mall. The Company is in discussions with the lender regarding a restructure of the loan secured by Greenbrier Mall. Management has previously impaired the mall that secures each loan due to a shortened expected hold period resulting from management’s assessment that there is an increased likelihood that the loan secured by each mall may not be successfully restructured or refinanced. The non-recourse loans that are in default at June 30, 2021 are as follows:
Property |  | Location |  | Interest Rate |  |  | Scheduled Maturity Date |  | Loan Amount |
Greenbrier Mall |  | Chesapeake, VA |  | 5.41% |  |  | Dec-19 |  | $ | 61,647 |
EastGate Mall |  | Cincinnati, OH |  | 5.83% |  |  | Apr-21 |  |  | 30,281 |
As described in Note 2, the filing of the Chapter 11 Cases also constituted an event of default with respect to certain property-level debt of the Operating Partnership’s subsidiaries, which may have resulted in the automatic acceleration of certain monetary obligations or may give the applicable lender the right to accelerate such amounts. The loans have an aggregate outstanding balance of $817,757 at June 30, 2021. On May 26, 2021, the subsidiary that owns The Outlet Shoppes at Laredo filed for bankruptcy. Subsequent to June 30, 2021, the Company entered into a forbearance agreement with the lender regarding the loan secured by Fayette Mall. See Note 15 for more information. In conjunction with the deconsolidation of Asheville Mall and Park Plaza, the Company deconsolidated the loan securing each property, which represented $138,926 of previously consolidated debt. See Note 8 for additional information. Scheduled Principal Payments As of June 30, 2021, the scheduled principal amortization and balloon payments of the Company’s consolidated debt, excluding extensions available at the Company’s option, on all mortgage and other indebtedness, including the secured line of credit, are as follows:
2021 (1) |  | $ | 97,868 |
2022 |  |  | 408,410 |
2023 |  |  | 1,519,979 |
2024 |  |  | 343,409 |
2025 |  |  | 37,624 |
2026 |  |  | 763,533 |
Total (2) |  |  | 3,170,823 |
Principal balance of loans with maturity date prior to June 30, 2021 (3) |  |  | 348,894 |
Total mortgage and other indebtedness, net |  | $ | 3,519,717 |
(1) | Reflects scheduled principal amortization and balloon payments for the fiscal period July 1, 2021 through December 31, 2021.
(2) | Includes $2,529,138 of liabilities subject to compromise in the accompanying condensed consolidated balance sheets as of June 30, 2021, and as the expected maturity date is subject to the outcome of the Chapter 11 Cases, the original, legal maturity dates are reflected in this table.
(3) | Represents the aggregate principal balance as of June 30, 2021 of the loans secured by EastGate Mall, Fayette Mall, Hamilton Crossing, Greenbrier Mall, Parkdale Mall & Crossing and The Outlet Shoppes at Laredo, which are in default. The Company is in discussions with the lender regarding the loans secured by these properties. The loan secured by Greenbrier Mall matured in December 2019 and had a balance of $61,647 as of June 30, 2021. The loan secured by Parkdale Mall & Crossing matured in March 2021 and had a balance of $71,278 as of June 30, 2021. The loan secured by EastGate Mall matured in April 2021 and had a balance of $30,281 as of June 30, 2021. The loan secured by Hamilton Crossing matured in April 2021 and had a balance of $8,039 as of June 30, 2021. The loan secured by Fayette Mall matured in May 2021 and had a balance of $138,187 as of June 30, 2021. Subsequent to June 30, 2021, the Company entered into a forbearance agreement with the lender regarding the loan secured by Fayette Mall (see Note 15). The loan secured by The Outlet Shoppes at Laredo matured in May 2021 and had a balance of $39,462 as of June 30, 2021.
Of the $97,868 of scheduled principal payments for the remainder of 2021, $70,507 relates to the maturing principal balance of two operating Property loans. The loan secured by Alamance Crossing matured in July 2021 and is currently in default. The Company is in discussions with the lender regarding a loan extension. The Company’s mortgage and other indebtedness had a weighted-average maturity of 2.6 years as of June 30, 2021 and 3.0 years as of December 31, 2020.

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