EXHIBIT 99.1
Published on June 12, 2008
Tanger Factory Outlet Centers,
Inc.
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News
Release
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For Release: IMMEDIATE RELEASE
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Contact: Frank C. Marchisello,
Jr.
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(336)
834-6834
Tanger
Outlets Closes on $235.0 Million Unsecured Term Loan
GREENSBORO,
N.C., June 11, 2008, Tanger Factory Outlet Centers, Inc. (NYSE: SKT), today
announced it has closed on a $235.0 million unsecured three year term loan
facility. The syndicated facility was jointly arranged by Banc of
America Securities LLC and Wells Fargo Bank, N.A., with Bank of America, N.A.
serving as Administrative Agent and Wells Fargo Bank, N.A. serving as
Syndication Agent. The facility bears interest at a spread over LIBOR
of 160 basis points, with the spread adjusting over time, based upon the debt
ratings of the company. Tanger currently maintains investment grade
ratings with Moody’s Investors Service (Baa3 stable) and Standard and Poor’s
Ratings Services (BBB- positive).
Proceeds
from the offering will be used to repay the company’s only remaining mortgage
loan with a principal balance of approximately $170.7 million. Upon
the repayment of this mortgage, which is expected to occur by the end of June
2008, Tanger’s entire portfolio of wholly-owned properties will be
unencumbered. The remaining proceeds of approximately $62.8 million,
net of closing costs, will be applied against amounts outstanding on the
company’s unsecured lines of credit and to settle the interest rate lock
protection agreements discussed below.
“Our
team, along with Bank of America and Wells Fargo Bank, have done a tremendous
job coordinating the funding and closing of this unsecured term facility,”
stated Stanley K. Tanger, Founder, Chairman of the Board and Chief Executive
Officer of Tanger. “Repaying our only remaining mortgage loan has
been a priority ever since we assumed the loan with the acquisition of the
Charter Oak portfolio in 2003.”
“The
syndication of this unsecured term loan has provided us the opportunity to
initiate a number of new banking relationships,” commented Steven B. Tanger,
President and Chief Operating Officer. “In the current economic
environment, Tanger has demonstrated it has access to attractively priced
unsecured capital.”
In
conjunction with the closing of the facility, Tanger settled $200 million of
interest rate lock protection agreements which fixed the US Treasury index at an
average rate of 4.62% for 10 years from such date in July 2008. The
company had originally entered into these agreements in 2005 in anticipation of
a public debt offering during 2008, based on the 10 year US Treasury
rate. Upon the closing of the LIBOR based unsecured term loan
facility, Tanger determined the likelihood of such a US Treasury based debt
offering to be not probable. The settlement of the interest rate lock
protection agreements, at a total cost of $8.9 million, will be reflected as a
charge to earnings in the company’s second quarter 2008 operating results and
funds from operations.
Tanger
Factory Outlet Centers, Inc.(NYSE:SKT), a fully integrated, self-administered
and self-managed publicly traded REIT, presently owns and operates 29 outlet
centers in 21 states coast to coast, totaling approximately 8.4 million square
feet of gross leasable area. Tanger also operates two outlet centers
containing approximately 667,000 square feet in which it owns a 50%
interest.
Certain
matters discussed in this press release regarding our debt retirement and
refinancing strategy may be forward-looking statements within the meaning of the
federal securities laws. These forward-looking statements are subject
to risks and uncertainties. Actual results could differ materially
from those projected due to various factors including, but not limited to, the
risks associated with general economic and local real estate conditions, the
availability and cost of capital, the company’s ability to lease its properties,
the company’s inability to collect rent due to the bankruptcy or insolvency of
tenants or otherwise, and competition. For a more detailed discussion
of the factors that affect our operating results, interested parties should
review the Tanger Factory Outlet Centers, Inc. Annual Report on Form 10-K for
the fiscal year ended December 31, 2007.
3200
Northline Avenue, Suite 360 · Greensboro,
NC 27408 ·
336-292-3010 · FAX
336-297-0931