Eliminates $44.5M of Debt through Exercise of Discounted Payoff Option on Prior Mortgage
Urban Edge Properties announced that it has completed the refinancing of its mortgage loan at Las Catalinas Mall in Caguas, Puerto Rico. The Company obtained a new ten-year $82 million mortgage provided by Banco Popular de Puerto Rico. The new loan is pre-payable after five years without penalty or defeasance costs.
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“This refinancing has substantially reduced the outstanding debt on this property and underscores the benefits of our secured debt strategy.”
The prior CMBS loan was modified in 2020 to provide the Company with a discounted payoff option at $72.5 million. As a result of exercising the discounted payoff option, the Company will record a gain on extinguishment of debt of approximately $43 million in the third quarter of 2023. The prior loan had a carrying value of $117 million, an interest rate of 4.43% and was scheduled to mature in February 2026.
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“As we continue to transform Las Catalinas Mall to drive the long-term growth of this asset, we are delighted to partner once again with Banco Popular, the leading banking institution on the Island,” said Jeff Olson, Chairman and Chief Executive Officer. “This refinancing has substantially reduced the outstanding debt on this property and underscores the benefits of our secured debt strategy.”
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