Mack-Cali Realty Corporation announced that it has successfully closed on a new $350 million unsecured term loan, which matures in January 2019 with two one-year extension options. The interest rate for the new term loan is currently 140 basis points over LIBOR, subject to adjustment on a sliding scale based on the company's unsecured debt ratings, or at the company's option, a defined leverage ratio. Mack-Cali entered into interest rate swap arrangements to fix LIBOR for the duration of the term loan.

Including costs, the loan provides for a current all-in fixed rate of 3.12%. There is no premium or penalty associated with full or partial prepayment of the term loan. Proceeds from the term loan are being used primarily to repay the company's $200 million, 5.8% unsecured bonds scheduled to mature on January 15, 2016, and to pay down outstanding borrowings on its $600 million unsecured credit facility.

Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities, LLC, and Wells Fargo Securities, LLC served as the joint lead arrangers for the term loan. Bank of America, N.A. served as administrative agent; JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A., and Capital One, National Association served as syndication agents; and US Bank National Association served as documentation agent. Other participants in the loan were PNC Bank, National Association and Citibank, N.A.