MACERICH CO 8-K

What Happened
The Macerich Company (the Company), as guarantor, and its operating partnership (The Macerich Partnership, L.P.) entered into a Second Amended and Restated Credit Agreement on February 24, 2026. The agreement establishes a $900 million revolving loan facility maturing March 1, 2029 (with an option to extend to March 1, 2030) and can be increased to up to $1.1 billion subject to lender commitments. Loans under the facility bear interest at the borrower’s election of Base Rate or Term SOFR plus an applicable margin tied to Company metrics; as of the agreement date the margins were 0.90% for Base Rate loans and 1.90% for Term SOFR loans.

Key Details

• Committed revolving facility: $900 million; optional increase to $1.1 billion (subject to approvals).
• Maturity: March 1, 2029, with option to extend to March 1, 2030.
• Pricing: Margin range depends on debt yield and Total Leverage Ratio; overall margin ranges cited from 0.80%–2.20% (or 0.35%–1.65% upon meeting certain thresholds). Current margins: Base Rate +0.90%, Term SOFR +1.90%.
• Security & covenants: Facility is secured by mortgages on certain wholly‑owned assets and equity pledges; all obligations are guaranteed by the Company and certain subsidiaries. The agreement includes a Borrowing Base Maintenance Covenant and financial covenants (minimum total debt yield, minimum fixed charge coverage ratio, and maximum floating rate debt), plus customary fees and events of default.

Why It Matters
This agreement provides Macerich with committed liquidity (up to $900M now, potentially $1.1B) to fund operations, capital needs or refinancing through at least 2029, which can reduce near‑term refinancing risk. Interest costs and available capacity will vary with the Company’s financial performance because pricing and some terms are tied to debt‑yield and net debt/EBITDA metrics. The security and covenants mean the facility could limit certain transactions or require asset/support levels to be maintained; conversely, achieving improved leverage metrics would allow release of mortgages and lower margins. Investors should view this as a material funding and liquidity action that affects Macerich’s credit profile and flexibility.