Mills Corp.'s Lenders Approve Sale Of Vaughan, St. Enoch, Xanadu

By Ed Welsch
From Dow Jones Newswires

Mills Corp. (MLS) said Thursday that its lenders consented to the sale of the company's interests in Vaughan Mills, St. Enoch Centre and Madrid Xanadu to Ivanhoe Cambridge Inc. for about $981 million.

The shopping mall real estate investment trust's lenders, a group including Goldman Sachs Mortgage Co., agreed to the sale on several conditions, including that the sale wouldn't result in the company's defaulting on its term loan, according to a filing with the Securities and Exchange Commission.

The deal, announced earlier this month, still requires the final approval of Mills' and Ivanhoe Cambridge's boards of directors. Mills expects the sale of Vaughan Mills and St. Enoch Centre to close on or about Sept. 15 and the Madrid Xanadu sale to close on or about Oct. 31.

Mills said in an earlier release that it expects net proceeds of about $500 million from the sale, which it intends to use to pay down a portion of its debt.

Mills and Ivanhoe each own half of Vaughan Mills and St. Enoch Centre, while Madrid Xanadu is wholly owned by Mills.

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