CHICAGO [May 5, 2011] – General Growth Properties, Inc. (NYSE: GGP) (“GGP” or the “Company”) today announced it has purchased for cancellation approximately 30.6 million shares of its common stock at a purchase price of $15.95 per share, investing a total of $487.9 million. The acquisition was completed through private purchases.
The Company also announced its intent to repay $339 million of corporate recourse debt prior to June 30, 2011. The debt carries an average interest rate of 5.9% and has an average maturity term of 1.8 years. Following the repayment of these facilities, GGP will be debt-free at the parent-company level, with the exception of $206 million of trust-preferred securities due in 2036.
“Since the beginning of 2011, we have generated liquidity in excess of $2 billion from the sale of non-core assets, non-recourse asset financings and a new credit line. Looking forward, we expect to retire in excess of $2.5 billion of subsidiary and asset level debt by the end of 2013,” said Sandeep Mathrani, chief executive officer of General Growth Properties. “The best use of our capital is to balance between reducing near-term debt maturities and investing in higher return long-term investments that will continue to build net asset value in the business. Given the current value of our stock, the quality of our assets and the outlook for our cash-flow generation, we can think of no better long-term investment than in our own company.”
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements. Actual results may differ materially from the results suggested by these forward-looking statements, for a number of reasons, including, but not limited to, our ability to refinance, extend, restructure or repay our remaining debt (including that of our Unconsolidated Real Estate Affiliates) with maturities in the short to intermediate term, our ability to raise capital through equity issuances, asset sales or the incurrence of new debt, retail and credit market conditions, impairments, our liquidity demands and retail and economic conditions. Readers are referred to the documents filed by General Growth Properties, Inc. with the Securities and Exchange Commission, which further identify the important risk factors that could cause actual results to differ materially from the forward-looking statements in this release. The Company disclaims any obligation to update any forward-looking statements.
GGP is one of the nation’s largest shopping center owners. GGP has ownership and management interest in 169 regional and super regional shopping malls in 43 states. The company portfolio totals 172 million square feet of space. A publicly-traded real estate investment trust (REIT), GGP is listed on the New York Stock Exchange under the symbol GGP.