Mack-Cali Realty, LP - the operating partnership entity of
Mack-Cali Realty Corp.
), a real estate investment trust (REIT), has recently agreed to
sell an underwritten public offering of $250 million worth of
2.500% senior unsecured notes. The notes are scheduled to mature
in 2017 and are priced at 99.409% of their par value to yield
2.625% to maturity.
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The net proceeds from the offering are expected to be utilized by
the operating partnership to repay debt outstanding under the
unsecured revolving credit facility and for other general
At quarter-end, the company had total debt of $2.0 billion, with
a debt-to-undepreciated assets ratio of 34.4%, an interest
coverage ratio of 3.1x, and cash and cash equivalents of $21.5
BofA Merrill Lynch, part of
Bank of America Corporation
); Citigroup part of
); and J.P. Morgan part of J
.P Morgan Chase & Co
) are the joint book-running managers for the
Mack-Cali is primarily engaged in owning, leasing, managing, and
developing Class A office and industrial/flex properties. The
company focuses on high-barrier markets mostly in the suburban
areas in the northeast and mid-Atlantic regions in the U.S., and
derives most of its annualized base rents from New Jersey.
In addition, Mack-Cali is structured as a vertically integrated
company, providing a full range of leasing, property management,
construction, legal, space planning, and architectural services
under a single platform.
Mack-Cali currently retains a Zacks #3 Rank, which translates
into a short-term Hold rating. We maintain our long-term Neutral
recommendation on the stock.