CBL & Associates Properties (CBL)

Recently, the Company executed term sheets relating to refinancings secured by mortgages on Volusia Mall, located in Daytona Beach, Florida and Honey Creek Mall, located in Terre Haute, Indiana. These loans are expected to mature in 10 years and bear interest at 8% per year. In the aggregate, these loans are expected to provide approximately $10 million in excess proceeds after retiring the existing mortgages of $51.2 million and $30.1 million secured by Volusia Mall and Honey Creek Mall, respectively. The Company intends to use the excess proceeds plus cash on hand to retire the $30.1 million loan (balance as of June 5, 2009) secured by Bonita Lakes Mall and Bonita Crossing in Meridian, Mississippi, that matures in October 2009.

During the first quarter of 2009, the Company announced that it had closed a $74.1 million loan secured by Cary Towne Center in Cary, North Carolina that will mature in March 2017. The balloon payment at maturity on this loan is $45.1 million. In April, the Company extended the maturity date on the loan secured by St. Clair Square in Fairview Heights, Illinois to April 2010. The balloon payment at maturity on this loan is $56.8 million.

As a result of these recent financing activities, the Company has closed, or received commitments to extend or refinance, all but one of its non-recourse, property-specific mortgage loans that, as of March 31, 2009, were scheduled to mature in 2009.

Many of the Company's mortgage loans provide for periodic amortization of a portion of the loan's principal amount, resulting in reduced leverage prior to the loan's maturity.  Principal amortization for the year ended December 31, 2008, including the Company's share of amortization from unconsolidated debt, was approximately $76.5 million.

As of June 5, 2009, the balance at maturity of the Company’s property-specific mortgage debt maturing in 2010 and 2011 was $512.4 million and $395.0 million, respectively. The Company estimates that the weighted average debt yield for the debt currently scheduled to mature in 2010 and 2011 is 17.6% based on net operating income ("NOI") for the year ended December 31, 2008 and mortgage balances due at maturity. For commercial mortgage-backed securities (“CMBS”) mortgages currently scheduled to mature in 2010 and 2011, the Company estimates a weighted average debt yield of 18.3% based on 2008 NOI and the mortgage balances due at maturity. For non-CMBS mortgages currently scheduled to mature in 2010 and 2011, the Company estimates a weighted average debt yield of 17.2% based on 2008 NOI and the mortgage balances due at maturity. Debt yield is defined as NOI divided by the mortgage balance.

NOI is a supplemental measure of the operating performance of the Company’s shopping centers. The Company defines NOI as operating revenues (rental revenues, tenant reimbursements and other income) less property operating expenses (property operating, real estate taxes and maintenance and repairs). The Company computes NOI based on its pro rata share of both consolidated and unconsolidated properties. The Company’s definition of NOI may be different than that used by other companies and, accordingly, its NOI may not be comparable to that of other companies. Since NOI includes only those revenues and expenses related to the operations of the Company’s shopping center properties, it believes that NOI provides a useful measure to its investors that reflects trends in occupancy rates, rental rates and operating costs and the impact of those trends on its results of operations.