Macerich Pays Off Term Notes

| About: Macerich Co. (MAC)

The Macerich Company (NYSE:MAC), a leading real estate investment trust (REIT), has recently paid off $446 million term notes that were scheduled to mature in 2010 by utilizing operating cash and proceeds from asset sales.

Macerich utilized the proceeds from joint venture asset sales ($275 million) to repay the bulk of the debt, while the balance was repaid by utilizing operating cash retained by paying 90% of the dividend in stock. At the same time, the company closed an $85 million loan collateralized by Paradise Valley Mall in Phoenix, Arizona. The loan, initially taken for a period of three years, can be extended to five years.

With the recent transactions, Macerich currently has only about $30 million of debt maturing in 2009, and about $269 million of debt maturing in 2010. Furthermore, all the debt maturities of the company are on secured property loans.

Macerich focuses on leasing regional and community shopping centers throughout the U.S. The company focuses on high barrier-to-entry markets and operates through its limited partnership, The Macerich Partnership, L.P., in which it holds an 87% stake. Currently, Macerich owns or has a managing interest in 72 regional shopping centers totaling approximately 75 million square feet of gross leasable area.