Rouse Properties announced the closing of a new $510 million corporate credit facility. The company’s bank group was led by joint lead arrangers Keybank Capital Markets, Merrill Lynch, Pierce Fenner & Smith and RBC Capital Markets. Key Bank acted as administrative agent; Bank of America and The Royal Bank of Canada acted as co-syndication agents; Barclays Bank and U.S. Bank National Association acted as co-documentation agents; and Credit Suisse, Fifth Third Bank, Cayman Islands Branch and RBS Citizens joined as lenders.

The facility replaced the company’s $337.9 million credit facility, which had been scheduled to mature in January 2015. The new facility consists of a $260 million term loan with a five-year term, and a $250 million revolving credit line with a four-year initial term and a one-year extension option.

Andrew Silberfein, president and chief executive officer of Rouse Properties, stated, “With the closing of this facility we have taken another meaningful step towards supporting the future growth of our company and improving our financial flexibility and balance sheet. The increase in our bank revolver capacity, significant reduction in the cost of this capital and the long-term nature of this commitment reflects not only the operational and leasing progress we have achieved to date, but highlights the improvement in Rouse’s financial strength as we continue to build value for our shareholders.”

Borrowings on the new facility will bear interest at grid pricing of LIBOR plus 185 to 300 basis points based on corporate leverage, versus the company’s previous facility, which carried interest at LIBOR plus 450 basis points.

The company’s revolving line of credit capacity will increase by $100 million, and the $100 million subordinated revolving credit line maturing in June 2015 will be eliminated. Proceeds from the increased term loan component will be used to retire a $70.9 million non-recourse mortgage loan on Southland Mall in California prior to its maturity date in January 2014.